Neighborhood Business Revitalization Guarantee (NBRG)
The NBRG helps to bring or expand business, or develop or rehabilitate real estate in urban and rural communities.
Features & Benefits
- Lower Interest Rate-improves profitability
- Revitalizes Distressed Urban and Rural Areas – improves neighborhoods
- Reduces Risk for the Lender - makes it easier to approve the loan
Terms
- Maximum guarantee is lesser of 50% or $750,000 for fixed assets, permanent working capital, and inventory.
- Maximum guarantee is lesser of 50% or $200,000 for revolving working capital.
Examples for fixed assets, permanent working capital and inventory loans/guarantees:
| Principal Amount |
Maximum Guarantee |
Guarantee Amount |
$1,000,000
|
50%
|
$500,000
|
$1,500,000
|
50%
|
$750,000
|
$2,000,000
|
37.5%
|
$750,000
|
- Maximum term of the guarantee is 5 years for fixed assets, inventory and permanent working capital, and 2 years for revolving working capital.
- Amortization may exceed the term of the guarantee but cannot exceed the useful life of the security.
- Interest rate is set by the lender and is subject to WHEDA® approval. A variable rate loan may not exceed Prime + 2.75%.
- Loan must be secured by the assets being financed. Personal guarantees may be required.
Fees
- Closing fee equal to 3.0% of guaranteed amount*
- Servicing fee of 0.50% on the outstanding guarantee amount due annually and it is to be paid by the Lender.
*May be financed and included in the loan request, but these fees will not be guaranteed.
How to Use NBRG
Gives you a summary of the process.
For Businesses and Developers
For Lenders
Eligibility
Business/Developer Eligibility
What types of businesses or developments are eligible?
Use of Loan Proceeds
What are the eligible uses for the proceeds of a WHEDA guaranteed loan?