CDA

LINE-OF-CREDIT TO TERM LOAN

  • About the Program

    1. CAPEX employs CDA participating, guaranteed or direct loans to fund the cost of capital expenditures:

    • Above the client’s ability to fund internally
    • Above bank’s underwriting comfort level
    2. Can be coupled with loans or investments from others public- or private-sector sources

     

  • Use of Proceeds:

    1. Revenue-producing equipment
    2. IT upgrades including software, hardware, installation and other security-driven, high-speed infrastructure expenditures
    3. Building expansion

  • CDA Program: Direct or Participatiing Loan
  • Amount: $250,000 to $1 million
  • Loan Terms:

    1. Personal guarantee of owner(s)
    2. CDA assistance up to $20,000 per job created or retained
    3. Debt service capability is evident
    4. Maturity determined by lender- up to 7 years

  • Benefits to Lender:

    1. Retain existing or establish new commercial lending relationship
    2. Lending risk reduced by amount of CDA participation
    3. One closing for line-of-credit and term-loan
    4. Blended interest rates available

  • Benefits to Borrower:

    1. Access to loan that is otherwise unavailable
    2. Extended maturity
    3. Draw downs permitted during first 12 months
    4. No repayment penalties

  • Borrower's Process:

    1. Discuss the transaction opportunity with your commercial lender
    2. Commercial lender will submit application, business plan, historic and projected financial and/or lender's credit analysis to CDA loan officer

  • Lender's Process:

    1. Determine amount of required credit enhancement
    2. Discuss the transaction opportunity with a CDA loan officer
    3. Submit lender's credit analysis to CDA loan officer
    4. Upon CDA Board approval, establish CAPEX Line-of-Credit-to-Term Loan

  • CDA Process:

    1. Flash response with 2-3 days following lender's exploratory contact
    2. Staff review in 4-7 days following receipt of appropriate documentation
    3. Submit final documentation the 1st day of the month
    4. Transactions submitted to CDA's Board of Directors monthly

  • CDA Loan Officers

    Contact:

    Janet M. Siegenthaler
    860.258.7816    		 P. Joseph Harpie
    860.258.7832
    Brien T. Day
    860.258.7831    		 Linda L. Wieleba
    860.258.7894

    See our CDA Lending Partners.

  • For Additional Information on all CDA Programs: Contact CDA by email.
  • Helpful Documents:

    Personal Financial Statement
    Comprehensive Business Plan Outline
    Financing Business Plan Outline