WHAT IS IT?
Many times, small businesses have difficulty securing the funding needed to establish a new business or renovate an existing one. The Gateway Mile Loan Fund was established in 2017 to help businesses wanting to own or expand a business in downtown Elkhart. Through this loan program, local financial institutions are working together to offer capital to people who are working to open or expand a business in downtown Elkhart.
WHAT CAN THE MONEY BE USED FOR?
Loan dollars can be used for:
- New Construction
- Business Expansion
- New Equipment
- Building Rehabilitation
LOCATION BOUNDARIES
North Boundary: Main Street Bridge
South Boundary: Indiana Avenue
West Boundary: Third Street
East Boundary: Prairie Street to Johnson St. Bridge
LOAN INFORMATION
Up to $50K small business loan
- Max term 5 years
- Max amortization 7 years
- Prime + 2%
- Up to 90% loan-to-value or cost
- Fees = 1% of loan
Up to $200K First Mortgage Real Estate
- Max term 5 years
- Max amortization 20 years
- Prime + 1%
- Up to 90% appraised value
- Fees = 1% of loan plus due diligence costs (which can be rolled into the amount of loan)
- 12 months interest only for projects involving major renovation
REQUIREMENTS TO APPLY
- Must have a business plan to apply
- Must have been denied a loan by a financial institution (bank or credit union)
- Must have a minimum 600 credit score
If your credit score is below 600 a referral to a credit recovery program given
For More Information contact:
Steve C. Watts
Administrator
Gateway Mile Loan Fund
swatts@elkhart.org
574-293-1531 x 135
Gateway Mile Loan Fund Brochure