The Section 108 Loan would establish two programs, one for Micro-loan Program of up to $50,000 and a second using the SBA 7A program for loans from $50,000 to $2,000,000. The second loan would be through a partnership with the National Development Council (NDC) and their Grow America Program.
These two programs would join our recent program that offers technical assistance and grants to $5,000 for business applications. These two new programs would allow Rockland County to loan businesses funding at competitive commercial rates, extend repayment terms, and ease the approval process.
Economic Development Microloan Program
The Microloan Program provides small, short-term loans to small businesses. The program makes funds available to offer assistance to small to medium sized business that are seeking assistance with working capital and business expansion. The program is developed to create or retain low-income jobs and to stimulate the economy in Rockland County. The minimum loan is $5,000. The maximum loan amount is $50,000.
How Microloan Funds May Be Used
Microloans may be used for the following purposes:
- Working capital
- The purchase of inventory or supplies
- The purchase of furniture or fixtures
- The purchase of machinery or equipment
- Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate
Terms, Interest Rates, and Fees
Loan terms vary according to:
- The size of the loan
- The planned use of funds
- The needs of the small business borrower
- The borrower's business and credit history
- The maximum term allowed for a microloan is five years. Interest rates vary, depending on the Section 108 Government Guaranteed Participation Certificates from the U.S. Treasury
For more information on these programs please contact Maria Frank, Housing and CD Supervisor at 364-3949, email: frankM@co.rockland.ny.us