Cameron County Machinery and Equipment Loan Fund
Loan Limit: $99,999.00
Terms: 5 years - Machinery and
Equipment
Rate: 2 1/2%
Fees: The Cameron County IDA charges
a $250.00 non-refundable application fee and a commitment fee
payable upon closing of 1% of the loan amount.
Matching Requirement: The Cameron
County Machinery and Equipment Loan Fund may be used for 50% of
project costs. Matching funds may be from a private lender, owner
equity, or other non-federal sources.
Eligible Uses: Machinery and
equipment purchases.
Eligible Applicants: For-profit,
private, commercial and industrial businesses located in Cameron
County which meet USDA Rural Development's definition of small
and emerging businesses defined as: "any private business
which will employ 50 or fewer new employees, has less than
$1,000,000 in projected gross revenues, has or will utilize
technological innovations and commercialization of new products
that can be produced/manufactured in rural areas and new
processes that can be used in such production."
Collateral: Cameron County is the
secured party. All loans must be secured at the highest position
available on one or more of the following assets: land, building,
machinery, equipment, accounts receivable, or inventory. Personal
or corporate guarantees may be required.
Application Requirements:
| (1) | Startup businesses and businesses in existence less
than 3 years which are proposing new operations must have a business plan. |
| (2) | Professionally prepared financial statements. |
| (3) | Commitment letters from all other sources of funding. |
| (4) | Sufficient cash flow to meet debt service. |
| (5) | Creation of one full-time equivalent job within 3
years for each $25,000 in CCMELF funds borrowed. |
| (6) | Price quotations for all machinery and equipment items to be purchased. |
| (7) | Certification that all jobs to be created will provide health care benefits. |