The purpose of the RLF is to provide credit enhancement to participating banks to facilitate the financing of business and industry in the 9 county region served by CADDA, resulting in a positive economic impact through the creation and/or retention of jobs.
Loan Structure (typical)
(The bank and CADDA have a shared 1st lien on the collateral)
Maximum/Minimum Loan Amount
The maximum loan amount is $500,000 (total loan request) and the minimum is $10,000 (total loan request).
The interest rate for the loan is determined by the bank. (CADDA may, in some instances have a lower rate, however, its floor is 4%.)
The term/amortization is determined by the useful life of the assets. One loan may be provided for all project assets using a “weighted average life”.
Eligible Uses of Proceeds
Types of Eligible Businesses
One permanent job should be created or retained per $20,000 of CADDA funds loaned. If fewer jobs are created/retained, the project must demonstrate a high positive impact acceptable to CADDA.
Benefits: Improved Loan Quality-CADDA’s participation reduces the lender’s credit risk.
Whether you’re searching for a $10,000 equipment loan or want financing for a $2 million building purchase, there is a good chance we have the right loan product for you.
CADDA has a reputation for providing the best service of any CDC in the Coastal Area. We’re committed to constant improvement. We look forward to hearing from you.