September 03, 2008
www.northfulton.com
FULTON COUNTY -- Fulton County is looking out for the best interests of its small business owners.
The county is offering local entrepreneurs three different programs toward low down payments, long-term financing and fixed rates from $10,000 to $4 million.
Equipment, buildings and land are big-ticket items that can be hard to come by for small businesses, especially when banks have turned them down for a loan.
Three federally backed loans including, the Business Improvement Loan Program, the Revolving Loan Fund and the SBA 504 Loan Program, are now provided through the county as a second chance for entrepreneurs who have been denied by a bank. In fact, a bank turn down letter is a requirement within the application for two of the programs (the BILP and RLF).
The money applied for can be used toward land, building renovations, leasehold improvement and working capital. The BILP and RLF are available at one-half the prime rate plus two percent, with a minimum of four percent, in comparison to the 6.5 to 8 percent rate normally charged by banks.
The following breaks down some specifics of each loan:
•BILP- Provides $10,000 to $50,000 for 90 percent of the amount needed Payback period: three to seven years instead of one to three years if borrowed from a bank. Unincorporated areas only.
•RLF- Provides $50,000 to $100,000 for 33 percent of the total project cost. Payback period: three to seven years instead of one to three years if borrowed from a bank. Inside Atlanta and unincorporated areas only.
•SB 504- Finances projects from $125,000 to $4 million. Payback period: 10 years fro equipment, 20 years for land and building purchases. Equity injection: 10-20 percent. Special-use projects may be required to pay and extra five percent for equity injection. Anywhere in Georgia.
Owners must also submit a business plan to be considered for a county loan. For more information, call Fulton County Department of Housing and Community Development at 404-612-8067.
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