What is BCDA’s Business Loan/Gap Financing Program
Over the years, BCDA has implemented numerous programs to help Boone County entrepreneurs get their start or grow their businesses. One of our most used programs is our Business Loan (gap financing) Program.
So what is gap financing? In general, gap financing is the term used when a buyer requires financial assistance to cover a gap in time, funding, or negotiations. In Boone County, BCDA offers gap financing loans to businesses needing extra assistance in securing funding from their bank.
It’s important to note that BCDA does not offer traditional business loans; again, this program is designed as a gap financing program. The following section describes how our program can support your business.
How Does BCDA’s Loan (Gap Financing) Program Work?
BCDA’s Business Loan (gap financing) program is a revolving loan fund that provides loans to start-ups and existing businesses in Boone County. The purpose of gap financing is to help entrepreneurs secure a business loan through a local lender of the applicant’s choice by providing an additional asset to the bank.
To get started, all applicants must complete a BCDA Inc. Loan Application form. This application includes providing supporting documents as listed in the Application Information Checklist and providing evidence of a working relationship with a local financial institution.
Once BCDA receives the completed application and supporting documents, the application will go to the BCDA loan committee. This committee is made up of loan officers in each of the Boone County communities who have decades of experience in business loans and financing. The loan committee will review the application and make a recommendation to the BCDA Executive Committee for approval.
Finally, the Executive Director of BCDA Inc. will notify both the applicant and primary lender upon approval/denial of the application.
Who Is Eligible For BCDA’s Loan (Gap Financing) Program?
Our Business Loan (gap financing) program is available to any corporation, partnership, limited liability company, or sole proprietorship operating within Boone County.
Eligible activities include but are not limited to:
- The purchase of real estate, options for such purchases, and the renewal or extension of such options.
- Public works improvements essential to the location or expansion of a qualifying business.
- Expenses for locating a qualifying business into the area or an existing business to a more suitable location.
- Loans to qualifying businesses.
- Loan guarantees to qualifying businesses.
- The provisions of technical assistance such as marketing assistance, management, counseling, preparing business plans, engineering assistance, etc.
How To Get Started
If you are interested in learning more about our Business Loan (gap financing) program, contact our office to set up a meeting. We will discuss your business idea and walk you through the loan application process.
