NECO’s Business Financing Objective
To support micro & small business development through financial investment services and advisory/consulting services.
A Volunteer Board of Directors made up of local business people administer the lending program. The board can approve business loans of up to $150,000 (loans up to $500,000 will be considered on an exceptional and limited basis) for business start-up or expansion.
Proposals must create and/or maintain permanent jobs in the region.
NECO – Application for Financing
- Please visit our Applications Page to begin your application process.
- Up to $150,000 per business on a loan basis for start-up, expansion or stabilization.
- Loans up to $500,000 will be considered on an exceptional and limited basis.
- Interest rates are not less than rates from a traditional lender and are currently starting at prime + 2% for term loans.
- Loans in the form of term and/or demand participation may be approved by the Board of Directors.
- No Grants or Forgivable Loans.
Loan requests are assessed on the basis of:
- Business plan viability
- Management expertise (i.e: Qualifications – experience, ability, etc.)
- Job creation/maintenance and average cost per job created/maintained
- Owner equity (typically 10% of total project)
- Security (i.e: Property, assets, 3rd party guarantee, etc.)
- Program Criteria:
- To apply for a loan, you must be ineligible for conventional bank financing and be planning to locate, start or expand business operations in the areas serviced by NECO.
- Repayment terms are flexible and designed to bring maximum advantage to the client’s business.
- Financial packaging with other lending institutions such as the Business Development Bank of Canada and local Banks and Trust Companies can also be arranged.