|
||||||||
Click Subscribe to receive updates via e-mail or to edit your profile.
|
Frequently Asked Questions for Businesses: Eligible Use of Loan Proceeds
Other Business QuestionsGeneral
What are the eligible uses of loan
funds? Loan proceeds can be used for the purchase or improvement of land, buildings, machinery and equipment; the purchase of inventory; closing fees; permanent working capital, initial marketing expenses, soft costs and refinancing existing debt that does not exceed 75% of the WHEDA guaranteed loan. Will a project involving real
estate qualify if the borrower leases a portion of the space to a tenant? Yes, under the mixed-use category, as long as your business occupies at least 25% of the total square footage of the building, it qualifies. A mixed-use property can be a combination of commercial and residential space or totally commercial where some of the space is leased to one or more businesses. Is there a limit to the amount
of loan proceeds that can be used in the part of a mixed-use property
not occupied by the borrower's business? Yes. The majority of the proceeds from the guaranteed loan should benefit your business. Some of the loan proceeds may, however, be used to make improvements to the remaining part of the property. Can WHEDA guarantee a new loan
to refinance existing debt? Yes, refinancing existing debt that has matured and is accompanied by a business expansion is an eligible use of proceeds. The portion of the loan to be used for refinancing cannot exceed 75% of the WHEDA guaranteed loan.
|
