|
|
Business Start-Up Loans
|
Starting a new business is one of the most difficult challenges a business owner will face. However, it will also be one of the most rewarding experiences once success is achieved. A business start-up may include a variety of combined loan purposes, such as the purchase of inventory, the purchase of equipment, leasehold improvements and the need for working capital. There are many, many variations and needs when starting a new business and RREDC has the financing tools available.
Minimum or maximum loan amount will depend upon the overall project, which often times ranges from hundreds of dollars to millions of dollars. RREDC makes loans of $5,000 to $300,000. We can make larger loans using the Headwaters Loan Fund.
The term for a business start-up loan will vary, depending on the needs of the new business. For instance, if the majority of the business start-up costs involve commercial real estate, then a 20 year term may be appropriate. However, if the business start-up costs are purely inventory and equipment, then a 5 or 10 year term may be more appropriate.
Interest rates are fixed and depend on the overall risk of the business and/or project.
Equity injection (down payment) generally is between 10% and 25%, depending on a variety of factors.
|
| RREDC 520 E Street, Eureka, Ca., 95501
Phone: 707-445-9651 FAX: 707-445-9652 | |
|
|
