About Our Financing

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Coastal Economic Development Corporation is a 501(c)(3) nonprofit lender. Our primary purpose is to provide gap financing for worthy economic development projects that, for various reasons, have a funding shortfall.

CEDC will not compete with banks on loans that they would otherwise fund through traditional methods. Neither will we compete with banks on interest rates and fees. All potential borrowers are encouraged to first contact and meet with a bank before discussing financing through CEDC.

Financing Requirements

CEDC financing can be used for:

  • Real estate acquisition/construction
  • Equipment
  • Working Capital
  • Business Acquisition

All applicants should be prepared to have detailed information to provide CEDC, including, but not necessarily limited to:

  • A comprehensive business plan
  • Historical financials
  • Projected financials
  • Specific information on project costs
  • Evidence of owner equity
  • Personal financial information (tax returns and personal financial statements) of all principals owning at least 20% of the business.

Loan Approval Process

CEDC's loan approval process is fairly straight-forward. Once loan applications are deemed complete, CEDC staff will underwrite the project (which may include coordination with a participating bank) and distribute all information to the CEDC Board of Directors and/or the CEDC Loan Committee. Decisions are made as quickly as possible, but timing of loan decisions is related to timing of pre-scheduled Board and Loan Committee meetings. Staff can always provide an estimated timeframe for any loan decision.

Financing Programs

CEDC has various financing programs, which are detailed in the links below. Please contact us with any questions or if you would like to inquire as to your project's eligibility for any of our financing programs.

Seacoast Revolving Loan Fund

The Seacoast Revolving Loan fund is used primarily for smaller, gap loans, to help projects that find themselves short of available, yet necessary capital. Loans generally range from $25,000 - $75,000 and can be used for real estate, equipment, or working capital. Approval for these loans rests solely at the discretion of the CEDC Board of Directors. Rates are determined based on an analysis of risk and collateral position.

Intermediary Relending Program (IRP)

CEDC received a funding award for USDA/Rural Development to capitalize its IRP loan pool. These loans can range from $50,000 - $150,000, and must result in the creation/retention of one job per every $20,000 loaned. Interest rates for this loan program are fixed and depend on the use. Real estate and equipment loans are the emphasis for this fund, however CEDC would also consider working capital loans to augment existing bank lines if adequate collateral is present. While lending decisions for this program are at the discretion of the CEDC Board of Directors, USDA/Rural Development must concur, on a case-by-case basis, on all CEDC loan approvals.

Community Development Block Grant Program (CDBGP)

The CDBG program, administered by the NH Community Development Finance Authority and funded by the US Dept. of Housing and Urban Development is the flagship federal economic development tool available for communities across New Hampshire. As a recognized nonprofit subrecipient of these funds, CEDC can access between $150,000 - $500,000 per project for CDBG economic development loans. CEDC and the community in which the business is located apply for these funds and CEDC loans them directly to the business. One job per $20,000 loaned must be created, the majority of which must go to residents from low to moderate-income households. There must be an equal amount of "other" funding in the project, such as bank debt or equity.

Rates and terms are flexible, and can be designed to help the business in a variety of different ways. The process can be more lengthy than an ordinary loan approval at CEDC. However, CEDC carries the bulk of the application work. Often, businesses who are planning to hire a significant number of employees find that access to CDBG funding is not only necessary (i.e. a larger funding gap), but also makes good business sense (i.e. more flexible terms). Also, it is important to note that CDBG funds accessed by CEDC are revolved into future loans for businesses in our region.