Business Development

Direct Lending

Commerce has a number of programs in which the agency makes direct loans to businesses. Operationally, these programs are characterized by below market rate financing (typically 4%) and flexible repayment terms. However, given the high level of demand and the limited funds available, Commerce should not be considered a source of primary financing. In fact, for the projects that are funded, the agency's participation rate rarely exceeds the lesser of 25% of project costs or $250,000.

In addition, much like our private sector counterparts, Commerce prepares an extensive evaluation of all applicants prior to funding. This underwriting process, which includes a SWOT analysis of the applicant's Strengths, Weaknesses, Opportunities and Threats, serves as the foundation for developing terms and conditions that will include specific collateral requirements and the personal guarantees of all individuals with an ownership interest of 20% or more.

For more details, contact your Area Development Manager.