|
PROGRAM |
EDA FINANCIAL RESTRUCTURING ASSISTANCE PROGRAM |
| PURPOSE: |
To make loans to businesses affected by a federally declared disaster or for disaster mitigation.
|
| USE OF FUNDS: |
Disaster mitigation: for fixed assets, including the acquisition, renovation, and installation of machinery and
equipment, business acquisitions, working capital, and debt restructuring.
|
| FINANCING METHOD: |
Economic Development Administration (EDA) provides the funds. PCR makes the loan
decisions and disburses the loan proceeds.
|
| QUALIFICATIONS: |
A business must have suffered physical and/or economic injury resulting from a federally declared disaster.
|
| MAXIMUM AMOUNT: |
$650,000 for each borrower.
|
| MATURITY: |
Working capital - up to 7 years
Fixed assets - up to 15 years
Real estate - up to 20 years
|
| INTEREST RATE: |
Fixed, or floating with the Prime Interest Rate, currently ranging from 7% to 10%.
|
| COLLATERAL: |
Available business and personal assets (machinery, equipment, accounts receivable,
inventory and real property).
|
| FEES: |
Loan origination fee of 1.5% plus reasonable fees to cover the cost of loan processing.
|
| CONTACT: |
Nestor Correa: (213) 739-2999 ext. 227 |
