Business Loan Program
We're helping Harrisonburg businesses grow! Harrisonburg Economic Development is pleased to announce the launch of our new Business Loan Program to encourage small business development and expansion in Harrisonburg. We know that there are opportunities for small businesses to grow and thrive, even in challenging economic times - and it is our mission to help those businesses.
Responding to feedback and requests from local businesses to help provide funding for start-ups and continuing business support, Harrisonburg Economic Development sought out a grant to develop a revolving loan fund. Providing an alternative to traditional loans, the Business Loan Program makes it easier for small businesses to access necessary funds, as many may not meet traditional loan requirements in the current economic climate.
Application for a loan through the new program will be reviewed, evaluated, and approved by a loan selection committee, appointed by the Economic Development Director.
Project Participation/Funding Limits:
- There is a recommended maximum of $10,000 for each job created or retained within 24 months and maintained for the duration of the loan.*
- It is recommended the applicant provide a minimum of 75% of the total project cost through equity injection, additional financing, or equivalents.
- Of the 75% the applicant must provide, a minimum of 10% of the total project cost must be in the form of cash or equivalents.
- The maximum loan per project will be 25% of the total project to a maximum of $25,000.
* Given the recommended $10,000 per job created or retained, it is projected that approximately 12-15 jobs will be created or retained within the first 24 months of program creation.
Loan Structure and Terms:
- All principal and interest will be paid back into the Harrisonburg Economic Development Revolving Loan Fund.
- Loans will generally be for a period of three to seven years.
- The interest rate will be established at the closing of the loan and will be rounded to the nearest ½ of 1% of the prime rate as reported by the Wall Street Journal.
Is your business ready to grow? Download and complete the following, along with the loan application:
Also review the Idea Analysis Checklist and Planning Your Start-Up Checklist to help you get started. If you have any questions, please contact us.
