HELPING RETAIL BUSINESSES GROW – THE PROSPECT AVENUE SMALL BUSINESS LOAN PROGRAM
What is the Prospect Avenue Small Business Loan Program?
The goal of the Prospect Avenue Small Business Loan Program is to stimulate economic growth and encourage the development of businesses that will provide job opportunities to low- and moderate-income residents of the Town of North Hempstead.
What businesses are eligible for Prospect Avenue Loan Program assistance? What businesses are ineligible assistance?
Businesses currently located or planning to locate along Prospect Avenue in New Cassel between Brush Hollow Road and Union Avenue (the "Prospect Avenue Corridor") may be eligible for financial assistance. However, businesses primarily engaged in the sale of alcohol, pornography, or "adult materials" are ineligible for funding.
What types of expenditures can be funded through the Prospect Avenue Loan Program? What types of expenditures are prohibited?
Funds may be used to finance the construction or rehabilitation of buildings or other site improvements, the acquisition of machinery and equipment, leasehold improvements, and the purchase of inventory.
Funds cannot be used for debt refinancing.
What are the terms and conditions of Prospect Avenue Loan Program assistance?
Subject to the Agency's determination of the relative community benefit to be achieved through the proposed project, the following terms and conditions apply:
Maximum Loan Amount - $30,000
Interest Rate – 5% per year
Term – Based upon the life of the asset being financed. Examples include up to 1 year for inventory, 3-7 years for machinery and equipment, the term of the leasehold for leasehold improvements, and 25 years for construction or rehabilitation of buildings or other site improvements.
Minimum Equity Investment – 10% of the total project cost
Collateral – A security interest must be given in collateral with a value equal to or greater than the amount of the loan.
Community Benefit Requirements –Loan Program financial assistance must result in the creation or retention of one job for every $35,000 in financial assistance provided, or the serving of one- low and moderate-income person for every $350 in funding provided (check with Agency representatives for details). Job retention must be supported with adequate evidence that the jobs would be lost if the financing was not provided.
Priority is given to funding businesses that will enhance the mix of goods and services available in the Prospect Avenue Corridor, create jobs, and will have the most significant impact upon revitalizing the Corridor.
Closing Costs – If approved for financing, the borrower will be responsible for paying costs associated with the closing, including the filing of UCC financing statements, title insurance, and all risk insurance.
How does a business apply for Prospect Avenue Loan Program funding? How is an application processed?
Business owners interested in exploring Prospect Avenue Loan Program assistance should arrange an appointment with an Agency loan officer. The applicant should be prepared with a description of the proposed project, its cost, and proposed sources of financing.
If the Agency loan officer preliminarily determines that the project is eligible for financial assistance, the business owner should prepare and submit to the Agency a Business Loan Application on a form provided by the Agency representative. The application should be accompanied by a non-refundable application fee equal to $50 or 1% of the loan amount requested, whichever is greater, to cover the cost of obtaining credit reports and other administrative expenses.
The Agency's Loan Committee will review satisfactorily completed applications, and will make a recommendation regarding the proposed loan to the Agency's board.
How can I learn more about the Prospect Avenue Small Business Loan Program?
To find out more about the Prospect Avenue Small Business Loan Program, you can call or write to the Town of North Hempstead Community Development Agency as follows:
North Hempstead Economic Development Loan Program
Town of North Hempstead Community Development Agency
51 Orchard Street
Roslyn Heights, New York 11577
(516) 869-7670
(516) 626-3953 (fax) allenp@northhempstead.com