SMALL BUSINESS LOAN PROGRAM
This loan program is made possible through Rural Development grant which awarded the loan fund to the Iberville Chamber of Commerce.
The chamber Low Interest Revolving Loan Program addresses the development and expansion needs of small businesses in Iberville Parish.
Eligible projects will be as follows:
- Highest priority will be given to projects creating at least one job per every $10,000 in loan funds.
- Loans for acquisition of land for industrial or commercial use.
- Loans for acquisition of properties with re-development potential for industrial or commercial use.
- Loans for the start up and/or expansion of business in the parish.
- Loans for the rehabilitation and renovation of usable vacant buildings for specific industrial or commercial use.
Ineligible projects will be as follows:
- Speculative building
- Loans to retire or refinance existing debt
- Business activity located outside Iberville Parish.
Eligible proceeds will be as follows:
- Land costs and development
- Building cost-construction and rehabilitation
- Machinery and equipment costs
- Facility development cost (water lines, sewer lines, access roads)
- Working capital
Projects will be given 12 months from start-up to develop the requisite number of jobs.
The following conditions are set as minimum guidelines:
- All applicants will be members of the Iberville Chamber of Commerce.
- No project will be allowed to finance more than 75% of the total costs from revolving loan funds.
- The Chamber reserves the option to take liens on applicant’s assets.
- Personal guarantees will be required of owners who control at least 20% of the company if determined to be necessary by the loan committee.
- The following maximum term requirements will be imposed on loans:
- Real Estate: 5 years
- Machinery and equipment: 5 years
- Loans of $10,000 or less: 3 years
- Rates will be 5% on the Rural Development funded loans. On loans made with matching bank funds, the rate will be dependent on the current treasury rate. Loans will be dated and processed in the order received by the Chamber president.
- A $30,000 ceiling will be placed on all loans.
- Loan closing incurred will be borne by loan recipients.
- All collateral must be insured.