FROED One Government Center Fall River, MA 02722-7700 Tel 508-324-2620 Fax 508-677-2840 info@froed.org		The Fall River Office of Economic Development (FROED) offers Fall River businesses low-interest financing through its all-new Business Advantage Fund (BAF). This unique gap financing tool complements other private and public loan programs available on a local, state and federal level. FROED works closely with banks and other lending institutions to design incentive packages that fit the needs of individual businesses. BAF Facts interest rate is fixed at 7% loan term: up to 7 years - machinery/equipment and working capital loan term: up to 15 years - real estate loan may fund 50% of total project cost maximum loan amount is $125,000 * origination fee is 1.5% legal fees are 1% plus recordings collateral interest subordinated to principal lender(s) Eligibility Criteria Fall River business (startup, relocation or expansion of existing facility) secured financing of 50% of total project cost (equity or private lending sources) creation of one new full-time job (or part-time equivalent) for each $25,000 of assistance Example ABC Company seeks to expand its production capacity through the acquisition of new manufacturing equipment totaling $250,000. The company foresees a need for additional materials and supplies, and wishes to maximize available working capital during the next few years. The company has contributed $25,000 in equity financing to the proposed expansion and secured approval for a $100,000 loan from a private lender. The company certifies that the expansion will create 5 new full-time jobs. Typical BAF Role FROED approves a $125,000 loan at a fixed rate of 70% of the prime interest rate - or a 6% minimum - over a 7-year term. The loan is secured by a subordinated filing on all business assets, personal guarantees and other collateral as determined by FROED. * Major projects creating significant numbers of new jobs are eligible for a higher cap. Click HERE to download a Small Business Loan Application Call FROED at 508.324.2620 for more information.