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Benefits to Borrowers and Financing Partners

Benefit For Businesses:

  • Save money through lower interest rates.
  • Financial stability through longer fixed rate interest periods (15 to 20 years on real estate).
  • Keep more cash in-hand through reduced cash-in requirements:

1. Typical project requires only 10% cash-in from borrower.
2. Many soft costs can be financed rather than paid for out of pocket.


Benefits For Financial Institutions:

Improves Asset Quality:
1.  Lower risk exposure through reduced loan-to-values. Typical Project:

  • 50% Financial Institution
  • 40% CREDC (subordinated debt to the financial institutions 1st position lien)
  • 10% Cash from borrower

2. Less volatility in debt service for the credit through long-term fixed rates/payments.
3. Improves working capital and liquidity of the borrower through lower cash-in requirement.

  • Competitive Advantage: Offer your borrower reduced cash-in requirements, lower interest rates, and long fixed interest rate periods for a portion of the financing.
  • Relationship Building: Borrowers appreciate being provided the best alternatives to their financing needs.

The Capital Region Economic Development Corporation (CREDC) has a variety of loan programs available for area businesses. CREDC’s Business Finance staff will work directly with the applicant to guide them through the application process, while working hand-in-hand with the applicant’s financial institution. If you are interested in learning more about these loan programs, please call Melissa McLaughlin, Director of Business Finance at (717) 213-5042 or use the E-mail Us  link at the top of the page.

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