Chapman Loans

• Guaranteed loan amount
  • The ETRDC is limited to a maximum loan amount of 90% of the project
  • Loans can range in size from $30,000 ( $20,000 is some cases ) to $250,000
  • The borrower’s injection can be as low as 10%
• Percentage of Guarantees
  • Will be made in the form of a Certificate of Deposit ( CD ) in the participating bank
  • Will be calculated as a percentage of the principle balance
• Use of loan proceeds
  • This loan program is to provide long-term financing to eligible businesses
  • Fixed assets
  • New construction
  • Renovations
  • Leased property
  • Equipment
  • Inventory
  • Working capital
  • CLP can even be used, in some instances, to provide injections
• Maturity
  • Maximum for real property is 15 years with maximum 10 years guarantee
  • The maximum for working capital is 7 years with maximum of 7 year guarantee
• Maximum interest rates
  • Prime as established by the Wall Street Journal plus 1%
• Guarantee fees
  • Processing fee is 2% and is incorporated into the loan
• Qualifications
  • Any existing or start up business within the counties of:
    • Anderson
    • Camp
    • Cherokee
    • Gregg
    • Harrison
    • Henderson
    • Marion
    • Panola
    • Rusk
    • Rains
    • Smith
    • Upshur
    • Van Zandt
    • Wood
• Some indication of job retention or creation must be shown