Loan Fund of Mesa
County
General
| Micro-Loans | Cash
Flow Sheet | Loan
Application
The LFMC is a loan fund
whose capital base is replenished by repayment of principal
and interest from past loans. Its initial funding came
from private and government grants. Operating as a program
of the Western Colorado Business Development Corporation
or "The Business Incubator Center," (BIC)
the LFMC was created to enable businesses to grow, create
jobs, and improve the local economy.
Since its inception in 1986, the LFMC
has loaned more than $13 million to over 250 Mesa County
businesses. Ninety-five percent of these businesses
have succeeded, adding jobs and additional tax dollars
to the local economy. The LFMC recycles dollars, lending
them back to other businesses in the community for the
benefit of all.
For start-up businesses or companies
needing capital to expand, the LFMC can help when other
choices aren't available. The LFMC provides an additional
source of funds when others have been exhausted and
can even increase private lender interest by reducing
the exposure of a private lender. The LFMC will consider
loan requests from applicants who have been denied financing
from other lenders and will finance requests for working
capital.
This loan option includes more than
financing alone. Our program was designed to help you
obtain funding as well as develop important management
tools to improve the chances for success in your business
venture. The staff at BIC is here to help you through
the application process, so please feel free to ask
for assistance as you need it. Following is the three-step
process involved in requesting a loan through the LFMC.
Step
One:
Review the “LFMC Highlights” below that
summarize the unique aspects of this lending program,
then complete the Business Loan Application and provide
the following documents:
- Business
Plan
- Historical financial statements
of the business (3 years)
- Historical tax returns of the business
(3 years)
- Personal financial statements for
all primary investors
- Cost of living budget
- Personal tax returns for all primary
investors (3 years)
- Cash
Flow projections (3 years)
- Schedules of collateral
- Employment plan
* Additional information such as appraisals,
buy-sell agreements, franchise agreements, construction
budgets, leases, contracts, etc. may be required depending
on the specific type of loan you are requesting.
The LFMC Loan Committee will then review
your complete loan package. You can normally expect
a decision from the LFMC Loan Committee within three
weeks after a complete loan package is submitted. If
you would like to have your loan package reviewed by
a business consultant before you submit it, please call
243-5242.
Loan Fund of
Mesa County
“Filling the Financial Gap”
Q: What is a financial gap?
A: You need $100,000 to complete a business start-up/expansion
and can only secure $80,000 through various sources.
You have a “financial gap” of $20,000.
LFMC Highlights
Eligible Businesses:
Most for profit businesses located in Mesa County are
eligible for LFMC loans. Preference is given to those
businesses that will create new jobs or retain existing
jobs.
Leveraging:
The LFMC is a “secondary” lender in most
cases. Typically, potential borrowers will obtain 60-80%
of their project financing from other sources. The LFMC
may assist in securing outside financing prior to applying
for LFMC funds.
Loan Amount:
Loans range in size from $8,000 to $500,000. Also available
are loans ranging from $1,500 to $5000 for low-income
persons interested in business start-up.
Terms:
Typical terms extend 3 – 7 years. Interest rates
vary from prime to prime plus four percent depending
on risk and economic incentives. The LFMC will seek
to secure the loan with available collateral.
Equity Position:
A 20% or greater owner equity position is normally required
to be eligible for LFMC funding.
Uses of LFMC Loan Proceeds:
- Equipment purchases
- Working capital
- Building improvements
- Inventory
- Real estate
Click here to
begin the application.
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