Purpose: To assist small- and medium-sized private contractors based in the Greater New Haven area with short-term financing to cover preliminary material and payroll costs.
Type of Contractors: General Contractors, Specialty Contractors (i.e. Abatement, Carpentry, Electrical, HVAC, Painting, Plumbing, Mechanical, Structural, etc).
Eligibility Criteria:
- Small contractors that are seeking to construct, expand or renovate properties, or act as subcontractors for larger companies, and are actively involved with, or have applied for, contract work through the City of New Haven (directly or indirectly through projects serving the economic development interest of the City), the New Haven Board of Education or the Housing Authority of New Haven (“Eligible Payor”).
- Contractors must be registered with the City of New Haven Small Contractor Development Program as an SBE firm
Terms:
- Loan size from $10,000 (minimum) to $100,000 (maximum) for the purpose of funding the first 60 days of labor and materials (no overhead or profit).
- Interest rate of up to 7.5%
- Application fee of $250 which will be applied to the points for successful applications
- Commitment Fee: 2 points of total approved loan amount
- Loan term equal to completion date per contract
- Option to renew is on a case-by-case basis, and upon the recommendation of the staff, and based on performance
- All contract payments from Eligible Payor must be two party checks made payable to the contractor and GNHCLF until the loan is paid in full.
- Requisition fee: $75.00
- Full principal repayment will be due and payable prior to the Contractor’s final payment application to the Eligible Payor along with any interest payments or other obligations related to the loan.
Need more information:
- Click here to download the Information/Term Sheet
- Click here to download the application
For more information Contact Earl Randall at 203-624-7406 or via email at Earl@gnhclf.org
“The Greater New Haven Community Loan Fund’s contractor program has been a godsend,” said Michelle Saunders Owner and Principle of Pride Construction, LLC. Read more about her experience with GNHCLF here.