U.S. Department of Agriculture Business and Industry Guaranteed Loan Program

Hopewell Valley Community Bank has partnered with the U. S. Department of Agriculture to provide loans through their Business and Industry Guaranteed Loan Program, to assist businesses in providing stability, growth, expansion, and rural employment. Loans offered through the program can be made in areas other than cities of more than 50,000 people and their immediate adjacent urban areas. Certain areas located within Mercer County, Hunterdon County, Somerset, County, and many other regions of New Jersey qualify for funding through this program.

The benefits of participating in this program, for businesses that may not qualify for conventional lender financing include:

• Higher loan amounts
• Lower interest rates
• Longer repayment terms

Any legal entity, including individuals, and public and private organizations may borrow. There is no size restriction on the business. Local economic development organizations can be considered.

Loans can be provided for the following eligible loan purposes:

• Business and industrial acquisitions, construction, conversion, expansion, repair, modernization, or development costs.
• Purchase of equipment, machinery, or supplies.
• Start-up costs and working capital
• Processing and marketing facilities
• Pollution control and abatement
• Refinancing for viable projects 

Loans may be approved up to the maximum loan amount under the legal lending limit of Hopewell Valley Community Bank, with a USDA loan guarantee of 80%. A minimum of 10% tangible balance sheet equity is required at closing, with 20% required for new businesses. Interest rates may be fixed or variable. All collateral must secure the entire loan. Repayment must be reasonably assured, with maximum repayment of working capital loans at seven years, machinery and equipment loans at fifteen years (or useful life), and real estate at thirty years. Personal and corporate guarantees are required. A qualified appraisal report is required on property that will serve as collateral.

To see if your business is located in a qualified area, and to apply for a loan through the U. S. Department of Agriculture to provide loans through their Business and Industry Guaranteed Loan Program, call any one of our commercial lenders at (609) 466-2900 to discuss this program with you.

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