Discover Bank and The Grow America Fund (an affiliate of the National Development Council) have partnered to launch the ExciteSussex Fund. Together, we are working to help companies grow their businesses in Sussex County. With longer loan terms and below market interest rates, the ExciteSussex Fund can help businesses stretch their cash flow and save thousands of dollars with lower monthly payments.
Who is eligible?
Qualified, existing businesses in operation for at least 2 full years with 10 to 500 full-time employees (subject to the SBA size standards by industry). Real estate
investment or development projects and financing entities are not eligible. The business must have the following public benefits:
- Creation and retention of permanent, full-time jobs
- Serve businesses located in Sussex County economic development zones within the grid
How much can be borrowed?
Loans can range from $250,000 to $1,000,000. However, the amount a business can borrow is subject to underwriting guidelines and availability of funds.
How can the loan be used and what are the repayment terms?
- Machinery & Equipment – to be paid over 10 years
- Real Estate Acquisition and/or Renovation – to be paid over 25 years
- Tenant improvements – to be repaid over the life of the lease
Is there an application fee?
There is no application fee.
Are there closing costs?
- Once the loan is approved, the applicant pays a 1% deposit at commitment letter
signing for appraisal, legal, and other costs incurred prior to closing
- SBA guarantee of 2-3%
- All closing costs may be financed through the loan
What is the interest rate?
- The effective rate interest will be determined based on the current market effective rate at the time the complete application is received.
What guarantees and collateral are required?
- Personal guarantees are required from any individual with > 20% ownership of the business
- Security interest in all available collateral
- For real estate: flexible loan-to-value, depending on underwriting
What reporting is required?
Grow America Fund meets with every business annually. Financial statements and/or tax returns shall be provided at least annually.