Capital Access Program
Program Objective
The Capital Access Program was established to support the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending.
Use of Loan Proceeds
Use of proceeds may include working capital or the purchase, construction, or lease of capital assets, which include buildings and equipment. Construction or purchase of residential housing and simple real estate investments (excluding those occupied by the applicant's business), are ineligible uses of capital access proceeds.
Process
A lender must submit a participation agreement to be considered for eligibility to enroll loans under the program. The borrower must apply for a loan with a participating lender with terms negotiated between the borrower and the lender. To be eligible, the borrower must be:
- A small or medium-sized business (499 employees or less);
- A nonprofit organization; or
- Domiciled in this state or having at least 51% of its employees located in this state
The participating lender has a reserve account in which the funds may be used in case of default of an enrolled loan. The reserve fund is composed of contributions from the borrower, the lender and the state. The financial institution may recover all or part of its contribution in any manner previously agreed upon with the borrower.
Resources
Participating Lenders [38KB MSWord]
Contact Information
For additional information on the Capital Access Program, please contact us at (512) 936-0100.
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