Urban Enterprise Loan Program Questions and Answers Urban Enterprise Loan Application (in PDF)

The Urban Enterprise Loan Program is a State funded loan program handled through the Minority Business Council. It focuses on assisting companies expanding in or relocating to the State designated Enterprise Zone. Eligible borrowers must be for profit businesses with current employment of less than 100. Eligible program activities will include fixed asset or working capital needs. Eligible projects must retain existing or create new jobs. The job creation criterion for UEL loans is one job created for every $20,000 in UEL funding. Job creation must occur within 2 years of the completed project.

The UEL can lend up to 50% of project costs to a maximum loan amount of $100,000. UEL loans will be collateralized to the fullest extent possible and personal guarantees are required for all owners of at least 20% of the financed business. A typical UEL loan structure would be 45% from bank financing secured by first security interest, 45% from UEL subordinated loan and 10% equity.

The UEL loans will be low interest in the range of 5%. Typically, loan terms will be matched to bank terms. UEL’s will require a first source employment agreement with SLATE for referral of new entry-level positions. Approved projects are generally funded 4 to 6 weeks after approval.