Meeting the Need for Growth Capital
The Bay County Growth Alliance, Inc. participates in commercial loans up to $250,000. BCGA helps meet the need for growth capital that can supplement financing available from a senior lender for promising businesses that, for various reasons, do not qualify for such loans from conventional lenders.
Use of loan funds, terms and guarantees
Use of loan funds, terms and guarantees
- Loan funds may be used for the following: working capital, machinery and equipment, acquisition of land and buildings, new construction, facade and building renovation, landscape and property improvements. Other uses may be for acquisitions, restructuring, startups and turnarounds.
- Loan duration varies according to the use of funds. A loan used for working capital, for instance, may range from 3 to 5 years, while loans for equipment may be up to 7 years and real estate loans may have a term of 15 years.
- Floating rates are structured with some form of enhancement of the interest rate so the success of the enhancement is tied to the success of the borrower. BCGA loans should not be perceived as a free or easy source of financing.
- Loans shall be guaranteed by the business and personally by the borrower. In addition, the borrower shall agree to subordinate all officer debt and defer monthly payments to all officers to the BCGA loan.