City of Flint & Genesee County EDC Loan Program

The purpose of the City of Flint and Genesee County Economic Development Corporation (EDC) financing programs is to provide gap financing to businesses located in the City of Flint and Genesee County. Gap financing is the amount of financing needed by the business that cannot be provided by conventional lenders. By participating with conventional lenders, the EDC’s can allow for new business start-ups and expansions to be adequately capitalized.

Eligibility:

The following types of businesses are eligible:

• Existing businesses looking to expand
  
• New businesses looking to start-up in the City of Flint or Genesee County
  
• Manufacturing, commercial and service businesses

Financing Program:

The limits and requirements of an EDC loan are as follows:

• Loan amount - up to 20% of the total project cost, not to exceed $300,000
  
• Interest rate - 7% fixed
  
• Term-up to 15 years
  
• The business must provide one new full-time job (exclusive of the owners) for each $10,000 loaned
  
• The business and assets securing the loan must remain in the City of Flint or Genesee County for the term of the loan
  
• All owners (and spouse) will be required to personally guarantee the loan

Application Requirements:

The following information must be submitted to the City of Flint or Genesee County EDC for their review and analysis before a funding commitment can be made:

• EDC application and related forms
  
• A business plan including information on the business and its principles
  
• The amount and type of financing being requested, the source of other financing, the use of these funds, and documentation of the financing gap
  
• Financial statements including a balance sheet and income statement for the prior three years and cash flow projections showing revenues and expenses for the 12 months following the loan
  
• Personal financial statements of all owners, stockholders and investors

Restrictions:

The following restrictions apply to the use of EDC funds:

• EDC financing is not a substitute for bank financing
  
• EDC funds cannot be used to pay for work already completed or for the payment of existing debt
  
• EDC funds cannot be used for housing projects, real estate or speculative developments, investment purposes or non-profits

Review Process:

1. Following the submission of a completed application, a decision on the application should be made within 30 days.
   
2. Loan closing can be expected to take another 30 days, however the EDC’s funds cannot be disbursed until all other project financing is disbursed.
3. When evaluating the request for financial assistance the EDC will look at the:

• Type of business
  
• Amount of the request
  
• Applicants ability to implement the project
  
• Amount of funds being invested by the applicant and other funds being leveraged
  
• Business’ ability to repay the loan(s)
  
• Number of jobs to be created
  
• Collateral available

Note: The EDCs reserves the right to modify or terminate this program at any time.