Loan Programs

Cooperative Business Assistance Corporation will guide you through the process of acquiring funding for your business. Our professional staff works one on one with you to tailor a financing package which will meet your business needs. We help your business become more competitive by providing assistance with financial growth through investment.

The current loan products offered by Cooperative Business Assistance Corporation include the following:

(Click on a county to see the loan programs offered.)

 

Micro Loan Program

Micro Loans Demonstration Program combines the resources and experience of the U.S. Small Business Administration and CBAC in providing small loans and technical assistance to small businesses. Under the MicroLoan Program, the SBA makes funds available to CBAC and they use the funds to make loans to new and existing small businesses.

Under the MicroLoan Program, a small business can borrow up to $35,000 directly from CBAC or up to $105,000 in partnership with other lenders.

  1. Eligibility Requirements

    Virtually any type of for-profit small business is eligible for the MicroLoan Program. It must, however, meet the SBAs size standards at the time of application.

  2. Use of Loan Funds

    MicroLoan funds may be used for working capital or to purchase inventory, supplies, machinery, equipment, furniture, and fixtures. These funds may not be used to purchase real estate or provide for down payments on equipment or vehicles otherwise leased or financed by others. With limited exceptions, the funds can not be used to refinance existing debts.

  3. Loan Terms

    Under the MicroLoan Program, the maximum direct loan amount is $35,000 with the average loan around $15,000. The maximum loan amount in partnership with other lenders is $105,000. The maximum loan term is six years. Loan term varies according to loan size and use of funds. Under the MicroLoan Program, CBAC offers favorable interest rates.

  4. Collateral Requirements

    CBAC sets collateral requirements in accordance with credit standards for the MicroLoan Program. In most cases, loans are at least partially collateralized by equipment, contracts, inventory or other property. CBAC also requires personal guaranties.

U.S. Small Business Administration 504 Program

The U.S. Small Business Administration through CBAC enables growing businesses to secure long-term, fixed-rate financing for major fixed assets through its 504 Program. It is designed to promote local economic development by helping healthy, growing businesses finance the acquisition of long-term fixed assets, such as land, building, modernizing, renovating or restoring of facilities. These assets must be used principally to enable the business to create or retain jobs.

504 Facts for Small Businesses

If you're a healthy business whose expansion plans call for the investment and use of real estate or equipment, you may qualify for up to 90% financing through the 504 Loan Program.

Here are the 504 advantages:

Typical 504 Financing Structure

Projected Costs Source Lien Funding Limits Rate Term Real Estate Term Equipment
50% Financial Institution 1st No Limits Market 10 years or Longer 7 years or Longer
40% 504 2nd Min: $50,000 Fixed
Max: $2,000,000-$4,000,000		 Fixed 20 years 10 years

Loan Terms

Interest rates are based on the current market rate for 5-year and 10-year U.S. Treasury issues, plus an amount slightly above the Treasury rate. Maturities of 10 and 20 years are available. Repayment is made in monthly, level-debt installments.

Fees

CBAC's fees cannot exceed the 1.5 percent processing fee on the SBA's debenture. A monthly servicing fee, of not less than 0.5 percent and not move than 2 percent per year, is paid on the unpaid debenture balance to CBAC.

There are also fees to cover the cost of public issuance of securities, fees paid to the SBA for its guaranty, and a one-time fee to the senior lienholder.

Eligibility

An eligible business must be a for-profit corporation, partnership or proprietorship with a net worth (including any affiliates) of $6 million or less. Average net profits after taxes cannot exceed $2 million per year for the previous two years.

Applying for a Loan

You can download the application or contact Cooperative Business any time Monday through Friday between 8:30 am and 5:00 pm to speak to a loan officer and request personalized assistance.

Financing Opportunities For Camden And Southern New Jersey

Commercial Loans from $35,000 to $500,000 are available for new enterprises and existing businesses located in Southern New Jersey. These loan generally have a five year term, and have a fixed rate of interest. The loans may be used to purchase equipment, inventory, minor leasehold improvements, or for working capital. New business owners are required to complete entrepreneurial training and write a business plan. All loans are personally guaranteed by the owners, and the lenders take the best available collateral.

Fixed Asset Loans are available to businesses with at least two years of positive operating experience located in Southern New Jersey. Loans up to $500,000 are available. These loans have up to a twenty year term, and have a fixed rate of interest set on a deal by deal basis. CBAC requires that for every dollar it lends, the borrower leverages an additional two dollars. The leveraged portion generally comes from other lenders, the borrower's bank of account, and the New Jersey Economic Development Authority (NJEDA). All loans are personally guaranteed by the owners, and the lenders take the best available collateral. CBAC's loans are subordinated to the other lenders. Borrowers may use these funds for permanent mortgages for commercial real estate acquisition, repairs, equipment purchases, and up to 25% may be used for working capital.

Loan Guaranty Program provides a guaranty up to 40 % of a conventional bank loan or $75,000 which ever is less. The guaranty program is proposed to help small businesses in Southern New Jersey establish banking relationships and fill gaps left by other guaranty programs. The loan guaranties coincide with bank terms and have a ten year maximum term.

Small Business Emergency Loan Program assists Camden businesses in times of fiscal or physical crisis. The Fund makes small loans at low interest rate based on repayment ability for emergency purposes such as immediate building and equipment repair and catastrophic financial problems. Terms are generally five years or less. The loans are generally capped at $6,000 and this program is only available in Camden City.

Financing Opportunities for Cumberland County

Loans up to $500,000 are available to businesses with an operating history and/or a well documented business plan with financial projections that demonstrate the ability to repay the loan. These loans have up to a twenty year term, and have a fixed rate of interest set on a deal by deal basis. CBAC requires that for every dollar it lends, the borrower leverages an additional two dollars. The leveraged portion generally comes from other lenders, the borrower's bank of account, and the New Jersey Economic Development Authority (NJEDA). All loans are personally guaranteed by the owners, and the lenders take the best available collateral. CBAC's loans are generally subordinated to the other lenders. Borrowers may use these funds for permanent mortgages for commercial real estate acquisition, repairs, equipment purchases, and working capital. Additionally, loans are available under the United States Rural Development program.

Woodbury Business Financial Assistance

This is a program specifically to help finance businesses in the City of Woodbury. Funds may be used for working capital, equipment, inventory, and real estate purposes. No cap has been placed on the amount for which a business may apply however; the funding available in the program is somewhat limited from time to time.