West End Neighborhood House, Discover Bank, Longwood Foundation, Department of State Division of Small Business, Development and Tourism and the Grow America Fund (an affiliate of the National Development Council) have partnered to launch the Grow Delaware Fund. The program was created to expand and replicate the success of the Grow Wilmington Fund. Together, we are working to help small and medium sized companies grow their businesses in Delaware. With longer loan terms and below-market interest rates, the Grow Delaware Fund can help businesses stretch their cash flow and save thousands of dollars through lower monthly payments.
Who are we?
Grow Delaware Fund is a consortium of private, public, and non-profit organizations. Together we are working to support business growth in Delaware by lending to small and medium size companies. With longer loan terms and below-market interest rates, the Grow Delaware Fund can help businesses stretch their cash flow and save thousands of dollars through lower monthly payments.
How does Grow Delaware Fund work with borrowers?
Grow Delaware Fund is managed by West End Neighborhood House, a Delaware based non-profit. West End is responsible for outreach to Delaware businesses and serves as the local point of contact throughout the loan process. The loans are underwritten and serviced by Grow America Fund (GAF). GAF is a Community Development Financial Institution (CDFI) licensed under U.S. SBA Preferred Lenders Program. Unique to our funding model is the personal attention provided throughout the process. Qadeer Gulzari, with West End and Conor McCarthy, as loan officer with NDC, will work directly with the business owner and, if owner chooses, the business accountants, from start of loan process to closing. There is no hand-off to a ‘central underwriting department’.
Grow Delaware Fund exists to help fund the growth of small business in our state. Business loans range from $150K-$4M, feature low interest rates, longer repayment terms, and lower monthly payments. (Subject to underwriting guidelines and loan fund availability.)
Frequently Asked Questions
The program is open to qualified existing businesses in operation for at least two full years with fewer than 500 employees and revenues between $200,000 and $20,000,000 (subject to the SBA size standards by industry). Real estate investment or development projects and financing entities are not eligible.
Up to $4M. Historically, our loans have ranged from $150,000-$2,500,000. However, the amount a business and its affiliates can borrow is subject to underwriting guidelines and availability of loan funds.
- Working Capital – to be repaid over 10 years
- Machinery & Equipment – to be repaid over 10 years
- Real Estate Acquisition and/or Renovation – to be repaid over 25 years
- Tenant Improvements – to be repaid over the life of the lease
There is no fee to apply
- Once the loan is approved, the applicant pays a 1% deposit paid at commitment letter signing for appraisal, legal and other costs incurred prior to closing
- Closing costs may be financed into the loan
- SBA guarantee of 2-3%
- 7-year treasury +3.17% with an indicative rate of 5.25% (as of 8/2/17)
- Interest-only periods are possible
- Personal guarantees are required from any individual with a greater than 20% ownership stake in the business
- Security interest in all available collateral
- For real estate: Flexible Loan-to-Value, depending on underwriting
As relationship lenders, GAF meets with every business in our portfolio annually. We also expect businesses to provide financial statements and/or tax returns on an annual basis at minimum.
As a mission-driven non-profit, GAF must meet at least ONE of the following public benefits:
- Create and/or retain permanent jobs
- Serve businesses located in Low or Moderate Income (LMI) census tracts
- Serve minority and/or women-owned businesses
For more information, contact:
GROW DELAWARE FUND
302-658-4171 x 142