OVERVIEW
This loan program is administered by the Palm Beach County Economic Development Office. The program assists eligible businesses with funding for fixed assets and working capital financing. This local economic development and business loan program is supported by the U.S. Department of Housing and Urban Development (Section 108 Loan Guarantee Program) and administered by Palm Beach County. These loan funds are federal dollars and will be provided as fixed or floating rate loans.
Projects must yield public benefits and meet one of HUD’s National Objectives. The creation of new jobs is required. The loan amount will be determined by the number of new jobs to be created.
Eligible activities include: Land acquisition, real property acquisition, utility and road infrastructure improvements, new construction of commercial and industrial buildings, rehabilitation of commercial and industrial buildings, purchase and installation of equipment and fixtures (that have a useful life of not less than 10 years), refinancing of existing debt (as part of a new project creating new job opportunities), working capital (labor costs and moving costs associated with the expansion or relocation of the project and other qualified start-up operational costs); and any other CDBG-eligible activity approved by the Board of County Commissioners.
For full information, pleaser refer to the Program Criteria and Program Application.
GENERAL INFORMATION
| Interest Rates |
Fixed or Variable |
| Interest rate for projects in distressed area |
HUD’s interest rate + 1% |
| Interest rate for projects out of distressed area |
HUD’s interest rate + 2% |
| PBC application fees |
1% fee on the face amount
0.75% closing fee |
| Other fees may apply if interested in a fixed rate |
Determined by HUD |
| Other fees may apply if changes to application package |
Applicant is responsible |
| Fees listed in the Good Faith Estimate |
May not be exact |
| Lender/bank fees |
Applicant is responsible |
| Appraisal fees |
Applicant is responsible |
| Environmental fees |
Applicant is responsible |
| Legal fees (including County’s Attorney’s Office) |
Applicant is responsible |
| Other fees |
Applicant is responsible |
- Loan Amount and Eligible Amount
| Minimum amount to apply for |
$250,000 |
| Maximum amount to apply for |
$1,000,000 |
| Assistance per Full Time Equivalent job |
$15,000 / job created |
| Maximum amount of assistance per FTE job |
$35,000 / job created (approved by Commissioners only ) |
- Terms and Lending Criteria
| Maximum loan term for real estate |
20 years, this includes time for construction/renovation |
| Maximum loan term for working capital |
7-10 years |
| Maximum loan term for equipment & fixtures |
Economic life of assets – up to 15 years |
| Loan to Value target (property and/or equipment) |
80% |
| Percentage of total project cost financed |
40% |
| Debt service coverage ratio |
1.20:1.00 |
Required owner’s equity:
(a) Personal funds- contributed up-front; may not be borrowed funds causing a lien to be attached to project collateral or earnings.
(b) Real property- only 50% of the appraised value will be accepted. |
10% of total project cost |
- Public Benefits and Other Requirements
| Low-moderate income persons must be |
51% of total hired |
| Borrowers must have a first source agreement with |
Workforce Alliance |
LOAN PROGRAM ADMINISTRATION
Palm Beach County Economic Development Office (EDO)
Kevin Johns, Director
301 N. Olive Avenue, 10th Floor, West Palm Beach, Florida 33401
P.O. Box 1989, West Palm Beach, FL 33402-1989
(561) 355-3624 • Fax (561) 355-6017
kjohns@pbcgov.com
Claudia López, Economic Development Specialist
(561) 355-1680 • Fax (561) 355-6017
clopez@pbcgov.com
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