FINANCING

Small Business Loans

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 up to $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.

Referencecs
SBLF Purpose Statement
SBLF Requirements
CommerceRI Financial Services Business Profile and Eligibility Form

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: Maria Gooch-Smith, 508-822-1020, ext. 314
• Community Investment Corporation: Buck Harris, 401-406-7282, ext. 128

Partners for direct micro-loans between $2,000 and $25,000:

• Center for Women & Enterprise: Amy Grondin, CPA 617-532-0242
• Social Enterprise Greenhouse: Annie Dickson, 401-272-2558, ext. 4047
• Community Investment Corporation: Buck Harris, 401-406-7282, ext. 128
• Rhode Island Black Business Association (RIBBA): Cynthia Scott, 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.

• Dave Harrington, 781-928-1117
• Carol Brennan, 401-450-0047

In The News

Mushrooming RI farm gets $325,000 loan through state program.
CommerceRI state SMB program has backed loans worth $600,000 so far

References

Rhode Island statute
Small Business Assistance Overview (English)
Small Business Assistance Overview (Spanish)

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.

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.

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.