BANDON - Thinking about buying a business, expanding your current enterprise or purchasing commercial property within Coos County but finding adequate funding hard to secure?
The Port of Bandon Economic Development Fund may be able to help – up to $250,000 and 75 percent of the project. The money can be used to start, purchase, construct or expand a business, buy inventory, and assure adequate cash flow for business success.
Made possible through a federal relending program, the fund offers fixed-rate financing for up to 20 years. All loans must be fully collateralized. The interest rate is currently 9 percent. There is no penalty for early repayment.
“Generally, we are more open to start-up businesses and credit glitches than traditional lenders,” said Melody Gillard-Juarez, administrative aide. “Often business owners utilize the fund to get their business going and then refinance when their track record becomes appealing to the banks. The fund can also partner with commercial lenders, government, private financing and others to provide the needed capital.”
To get started, applicants need:
• A turn-down letter from a commercial lender.
• A business plan.
• 25 percent of the project from the applicant or another source.
• Assets sufficient to fully collateralize the loan.
CCD Business Development, a certified business development company, serves as the fund administrator to package and service loans. Contacts in CCD’s Coos Bay office are Theresa Haga or Michele Laird, 541 756-4101. These professionals meet with a potential applicant early on to discuss the intended project and the requirements of the loan program.
“Once the borrower has completed the application process, the Port EDF Board is quick to meet to decide whether funding is granted,” Gillard-Juarez said.
The Port of Bandon Economic Development Fund was formed in the mid-1990s by the Port of Bandon Commission as a separate nonprofit to apply for and relend $1.5 million in USDA Rural Business Development funds pledged to create and expand jobs. Since that time, the relending program has loaned nearly $5 million in revolved funds that created or saved over 170 jobs.