Loan Details
As part of the Community Futures program, the Community Futures Development Corporation of Middlesex County provides term loans to revenue-generating,not-for-profit organizations that have had difficulty finding financing elsewhere on reasonable terms.
Loans up to a maximum of $250,000 can be made to organizations in Middlesex County (excluding the City of London) that will be creating new jobs or maintaining existing jobs in the local area.
Usage of Funds
Financing can be used for the purchase of fixed assets, leasehold improvements, inventory or working capital.
Application Process
Applicant submits a completed Business Plan, Cash Flow and Loan Application. Please attach profiles of all principles and board members, a copy of the charter or articles of incorporation, last audited financial statements, and information regarding the organization’s mission/mandate.
Business Plan Outlines and loan applications are available on-line or by contacting our office.
A successful application must demonstrate:
- Employment creation or maintenance for predominately local residents
- A firm commitment to the operation of the organization, including an investment of funds and resources
- Ability to repay the loan by way of revenues generated by the provision of local programs/services and fundraising (when applicable)
- Sufficient human resources to operate the organization.
- Adequate security which may include a combination of corporate assets
Timeline
All loan applications over $25,000 must be received by the 25th of the month in order to be considered at the next monthly board meeting. Loans of $25,000 or less can be submitted any time.
Fees
All loan application fees are waived for non-profit organizations. Applicants are responsible for all legal costs to complete the loan securitization package and must be life insured. These funds can be paid for from the proceeds of the loan.
Interest Rates
Interest rates are currently fixed as follows:
Starting at Prime and must be at least 75% secured
Terms of Payment
Loans are subject to a maximum five (5) year term, with a maximum amortization period of fifteen (15) years. All loans are subject to regular monthly payments however, remain open for repayment, in full or in part, at any time, without penalty.
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