Community Advantage Loans
For a Community Advantage Loan through SomerCor, a business must satisfy these eligibility requirements.
- Are for-profit, have been in operation for at least two years and are seeking to grow.
- Have a minimum of four employees.
- Have revenues between $150,000 and $4 million dollars *Exceptions for manufacturing companies.
- Are engaged in business in the Chicago-land area.
- Have reasonable invested equity.
- Have used alternative financial resources, including personal assets, before seeking financial assistance
- Plan to use the funds for a sound business purpose
- Are not delinquent on any existing debt obligations to the U.S. government.
- Finance increased receivables and augment working capital, or inventory
- Expand or modernize facilities, purchase machinery, equipment, fixtures, and leasehold improvements
- Purchase, new, existing commercial buildings (owner-occupied)
- To assist in the acquisition, operation or expansion of an existing business
- To refinance existing business debt, under certain conditions
- Capacity: Ability to Repay loan on time from business cash flow (1.1 DSC).
- Character: Adequate management experience and/training.
- Creditworthiness: Satisfactory payment history with creditors.
- Collateral: Adequate equity investment and collateral coverage including “all available assets”.
- Capital: Positive net worth/working capital.
- Commitment: Personal.
Red flags or Deal breakers
- Poor Personal Credit, Poor personal character, 912 issues.
- ‘Collateral’ Absent Request
- Non owner occupied real estate, apartments and rental property, developers.
- Industry Pyramid sales, gambling, speculative businesses, adult entertainment, private clubs.
- Arrearages or in default on child support, payroll taxes, SBA or other CDFI obligations.
- Revenues do not demonstrate the ability to service the debt.
- Assumptions of SBA loans at other institutions.
- Refinance were the current lender is in a position to experience a loss.
- Life Insurance Companies (Some Life Insurance Agents may be eligible).