Business Financing

KVCOG provides financing assistance for start-ups, expansions and modernizations throughout the region. Funding for the agency’s lending, grant and technical assistance programs are secured through a mix of State and federal loan and grant programs and strategic partnerships. KVCOG offers direct loan programs through our Revolving Loan Funds (RLF). An RLF lends funds to those in need and uses principal and interest payments to finance new loans.

Application

If you are interested in applying for a KVCOG loan, reach out to our RLF Specialist, Maggie Camden, via email at mcamden@kvcog.org or loans@kvcog.org or via phone at (207) 453-4258 x 3 to discuss eligibility requirements and loan options.

If you are in need of creating, or updating your business plan, please use the small business resources below. 

Business Eligibility Requirements

• The business must be located in Kennebec, Somerset, or Western Waldo Counties.
•  The business must be unable to finance the project through traditional funding sources or other Federal, State, or local programs.

Loan Eligibility Requirements

We will look for the following elements when considering a loan request:

•  A written business plan.
• Good character and management capability.
• Collateral sufficient enough to secure the loan.
• Good internal financial records and cash-flow management.
• Reasonable assurance that earnings will be sufficient to pay all obligations.
• A meaningful stake in the business and amount of cash equity invested.

KVCOG as a Public Lender

What is the difference between a private lending institution and public lending agencies like KVCOG?

Similarities:

• Credit and underwriting analysis to assess risk.
• Established policy & procedure to service loans.
• Provide funds that borrowers need to accomplish goals.

Differences:

• Public lenders like KVCOG are not profit driven like conventional lenders.
• KVCOG lends to promote the common good.
• KVCOG utilizes funding sources that set economic development and job creation/retention as goals.
• KVCOG can set lower interest rates, longer terms, and accept higher risk than conventional lenders.

Eligible Use of Funds:

• Start-up Operating Costs
• Real Estate Acquisition
• Building Improvements
• Furniture & Fixtures
• Equipment
• Inventory & Supplies
• Working Capital
• Debt Refinancing

Loan Criteria:

Loan Amounts: Up to $200,000 (more can be considered on a case by case basis).

Interest Rates: Fixed competitive rates.

Terms: Typically 15 years or less based on the business cash flow and the useful life of the financed assets.

Security/Collateral: Assets being financed and other collateral, personal assets, and personal guarantees