The Revolving Loan Funds
The purpose of the Revolving Loan Funds is to foster creation of jobs in the City of Batavia and to assist in the expansion of start up businesses. Loan payments are recycled back into the fund to provide capital for future business development.
BDC Loan Fund
Businesses that create or retain jobs in the City of Batavia are eligible for loan funds.
Loan Details The Batavia Development Corporation has established the following guidelines:
- BDC Loan Application fee of $50
- Bank participation may be required and is encouraged
- Loan terms: up to 5 years
- Loan amount: $30,000.00 maximum
(Real Estate acquistion may increase limits)
- Interest rate:
- Prime -1 for targeted businesses and elimination of blight.
- Prime +1 for non-targeted businesses.
Targeted Businesses: Manufacturing, Downtown or Ellicott Street area, food processing, Class A office, niche restaurants, niche retail, printing, computer services, back office processing, health services (except doctors and dentists).
- Collateral requirements based on risk
- Business must be in the City of Batavia
Micro-Enterprise Loan Fund
The purpose of the Micro-Enterprise Loan Fund is to create and retain low to moderate income jobs within the City.
Businesses with five employees or less, including the owner with at least 51% of employees in the low to moderate income level.
Loan Terms The Batavia Development Corporation has established the following guidelines:
- Available up to 10 years
- Funding up to $20,000 with $10,000 in grant funding and $10,000 in loan
- Minimum interest rate of 2% with maximum interest rate of Prime +1
Use of Funds
Purchase of machinery/equipment, working capital/inventory and real estate acquisition.
Applications can be picked up at the City’s Manager’s Office at One Batavia City Centre, on the 2nd floor.
Basic Information Required
- Business Plan
- Financial projections & statements
- List of collateral
- Personal Financial Statements
- Submit application & basic information
- Make a presentation to the Batavia Development Corporation Small Business Loan Committee to receive endorsement to present to the entire Board for approval at a later date
- Batavia Development Corporation Board of Directors makes a determination on the loan/grant proposal; decision factors include but not limited to the merit of the business plan, capability and experience of the operator, financial wherewithal to succeed.
Basic Review Criteria
- Quality of Application
- Jobs created or retained
- Financial stability of the applications
- Benefit to City of Batavia tax base
- Applicant commitment to proposal