NYBDC Quick Liquidity Loan Program & SBA Disaster Loans in Response to Hurricane Irene
New York Business Development Corporation (NYBDC) approved a loan program yesterday in response to financing needs as a result of damage from Hurricane Irene. This program is aimed towards providing 'quick liquidity' (i.e. cash). The following bullet points summarize the program:
- NYBDC will provide credit score loans of up to $25,000 with disbursement within 3 days of completed application.
- The business must have been in business for 2 years at a minimum.
- Only a general collateral requirement will be required, so individual assets will not be tied up.
- A rate of 9.5% will be charged, with 0% for 60 days and interest only for 4 months.
- The loans will be amortized over 3 years.
- There will be NO prepayment penalty, so this is designed as a quick bridge loan until other (SBA, etc.) disaster loans become available. The SBA disaster loans will be issued for larger amounts at 6% for longer terms, so early payback of NYBDC will not be penalized.
- NYBDC will be using several of SBA’s standard forms to lessen the paperwork duplication, since applicants will usually be making other/larger SBA applications.
- The program will be available in all counties within the SBA disaster declaration regions.
About NYBDC (http://www.nybdc.com/index.html)
New York Business Development Corporation (NYBDC) is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. Our goal is to be more creative in our underwriting. In many cases, we include multiple participations, SBA guarantees, flexible amortization and long-term payouts.
For more information please contact Jim King at email@example.com or Mid-Hudson SBDC at 339-0025.