The Capital Region Economic Development Corporation (CREDC) has a variety of programs available to help area businesses purchase real estate.These programs can be used by businesses to purchase property or equipment for their operations. CREDC’s Business Finance staff works directly with the applicant to guide him/her through the application process, while working hand-in-hand with the applicant’s financial institution. CREDC also works with businesses to help them find the best option for their situation. Overall, CREDC can help you close the deal.
A typical loan is structured in the following manner:
- 50% Financial Institution Loan
- 40% CREDC loan (subordinate to Financial Institution’s 1st lien loan)
- 10% Client Equity Injection
CREDC’s involvement helps to close the deal by reducing the Financial Institutions risk through lower exposure and improved collateral position. CREDC’s loan also benefits the client through lower interest rates, long-term fixed interest rates that stabilize a portion of the debt payments, and keeping cash in the client’s pocket to finance working capital and/or growth needs.
To qualify for real estate projects, the property must be owner-occupied. For more information about the programs or to discuss options, contact Shaun Donovan at (717) 213-5033 or go to credcpa.org.