FINANCING
Small Business Loan Fund
Small Business Loan Fund
Small businesses are the heart and soul of our nation’s and state’s economy. They comprise 99.9% of all businesses across the nation and 98.9% percent of all businesses in Rhode Island. Unfortunately, small businesses often find themselves constrained by the balance sheets or liquidity requirements of traditional bank lending parameters. At CommerceRI, we know a small business’s success can result in rapid growth and financing needs that may exceed the leverage ratios of traditional banks.
Our Small Business Loan Fund (SBLF) helps level the playing field and aims to fill the gap in financing that small and mid-sized businesses face. If your small business needs a direct, fully secured loan, the SBLF provides loans between $100,000 and $500,000 for working capital to existing manufacturing, processing, and selected service businesses. Additionally, manufacturers seeking to finance the acquisition of land, buildings, and equipment may qualify for loans in excess of $500,000. Interest rates are fixed, repayment terms are flexible, and there’s an expectation that at least one job will be created for each $50,000 you borrow.
References
SBLF Purpose Statement SBLF Requirements
General Finance Inquiries
For help with questions not related to the SBLFC, regarding general small business financing help and to find out about what options businesses have for financing in Rhode Island, contact Chris Cannata, Director, Business Advisory Group.
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Contact
Director of Loan Portfolio and Credit
Small Business Assistance Program
Small Business Assistance Program
This program helps entrepreneurs and small businesses that are having difficulty obtaining adequate credit from traditional lending organizations. The program focuses on women- and minority-owned enterprises, as well as those in Rhode Island’s underserved communities. The program partners with the following organizations to provide direct loans to businesses.
Partners for direct loans at or above $25,000:
- Business Development Company of Rhode Island: Peter Dorsey, 401-351-3036
- South Eastern Economic Development (SEED) Corporation: Angela Laperriere, 508-822-1020, ext. 312
- Community Investment Corporation: Jessica Mello AVP, Loan Officer jmello@ciclending.com T: 203.776.6172 x128 | C: 508.642.8015
Partners for direct micro-loans between $2,000 and $25,000:
- Social Enterprise Greenhouse: Stefanie Engelhardt, 401-383-3760
- Community Investment Corporation: Jessica Mello AVP, Loan Officer jmello@ciclending.com T: 203.776.6172 x128 | C: 508.642.8015
- Rhode Island Black Business Association (RIBBA): Lisa Ranglin, 401-383-1179
Rhode Island Capital Access Program For $1,000- $750,000 The program encourages banks and credit unions to make slightly riskier loans by providing matching funds from the state to create cash collateral accounts. Rhode Island Capital Corporation, which administers the program, also offers a full suite of business lines of credit, SBA loans, term loans, and mezzanine investment from $50,000 to $5 million.
- Shauna Mancinelli, 781-928-1100 ext. 137
References
Rhode Island statute
Small Business Assistance Overview (English)
Small Business Assistance Overview (Spanish)
In The News
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Mushrooming RI farm gets $325,000 loan through state program
CommerceRI state SMB program has backed loans worth $600,000 so far
Contact
Managing Director of Financial Programs
Mortgage Insurance
Mortgage Insurance
The Rhode Island Industrial Recreational Building Authority (IRBA) provides mortgage insurance to ease the down payment burden when your company invests in real estate, machinery, equipment, or tourist/travel recreation projects.
The maximum amount that can be insured through this program is $5,000,000, covering up to 90% on real estate, 80% on machinery and equipment, and 75% on tourist/travel recreation projects. This program offers borrowers debt insurance on tax-free bonds, taxable bonds, and conventional mortgages.
CommerceRI staff can walk you through eligibility criteria, from dollar limits per project to approved use of funds and forms of financing.
Contact
Managing Director of Financial Programs
Tax-Exempt Bonds
Tax-Exempt Bonds
RIIFC issues tax-exempt private activity bonds for companies to finance manufacturing projects with a $10,000,000 maximum limit per project. The bond can finance up to 100% of the cost for a manufacturing project including land, new machinery and equipment, building costs, and certain eligible “soft” costs. Interest rates are determined by the market.Contact
Managing Director of Financial Programs
Taxable Bonds
Taxable Bonds
RIIFC issues taxable bonds for businesses that are expanding and require a long-term financing solution. These bonds are almost identical to the tax-exempt bonds, but they are taxable for financing fixed commercial assets such as land, building, machinery and equipment, and related “soft” costs. The limit per project is established by the bond purchaser or credit enhancer. If you’re considering bond financing, we at CommerceRI can help you understand the wealth of relevant information. Contact our Finance team to discuss eligibility, project requirements, and other details.Contact
Managing Director of Financial Programs