Do I need a bank in order to get a BCF loan? No. A commercial lender is required for all loans under the BCF Loan Participation Program. The prospective borrower's bank or lender is the ideal place to start when applying for a BCF loan. If the borrower's bank is not a BCF Certified Lender they can contact the BCF at (212) 243-7360 to learn how to become one. The process is quite simple. Click here to search for a certified BCF Certified Lender in your state. The BCF can also help borrowers find a lender.

I would like to use my bank, however they are not a BCF Certified Lender and aren't familiar with the BCF and its program. How can I use my bank as the lender? The prospective borrower's bank or lender is the ideal place to start when applying for a BCF loan. If the borrower's bank is not a BCF Certified Lender they can contact the BCF at (212) 243-7360 to learn about the BCF and obtain the necessary information to become a Certified Lender. If you provide the contact name at your bank, we’ll be glad to call him/her to start the process.

Do I need a contract or purchase order from an NMSDC corporate member or a member of an NMSDC affiliated Regional Council?
No. All that is required now is a working relationship with an NMSDC Corporate member or a Corporate member of an NMSDC affiliated Regional Council which must be a customer of yours.

Do you have other types of financing if my business isn't able to get a bank loan?
Yes. The BCF's mission of providing access to capital for minority-owned businesses is further enhanced through Strategic Alliance Partners and subsidiaries that offer alternative Specialized Financing products not provided in the BCF's core Loan Participation Programs. These include Long Term Debt/Equity Financing, Commercial and Government Accounts Receivable Financing, Equipment Leasing, Commercial Real Estate Financing, Accounts Receivable Factoring.

Does the BCF finance non-profit organizations and/or give grants?
The BCF does not provide financing to non-profits or give grants. The BCF provides commercial loans and guarantees to ethnic minority-owned for-profit businesses and expects loan payments to come from internally generated working capital, cash flow, and earnings.

How long will it take to get my loan approved?
If a loan is made through participating lenders. The time it takes the lender to approve a loan will vary depending upon a number of factors including the lender's underwriting process and preparedness of the borrower. The BCF's decision to participate in or guarantee the loan is generally made within 10 business days following approval by the bank.

Doesn't the approval of a facility take twice as long since it has to go through both the bank process and the BCF process? No. It takes the BCF no more than 10 business days to make a decision on a loan once it's approved by the bank.

What information do I need to apply for a BCF loan? At a minimum, the borrower needs to provide the lender with the following information when requesting a loan:

  • Purpose of loan and source of repayment
  • History of the business
  • Financial statements for the most recent three years (existing business)
  • Schedule of term debts
  • Aging of accounts receivables and payables (existing business)
  • Projection of income, expenses and cash flow together with assumptions used
Signed personal and corporate income tax returns for the most recent two years. The lender may require additional information.

What interest rate do you charge? Interest rates and other terms and condition are set by the participating lender subject to the BCF's approval or set by the BCF if it is a direct loan. Generally, rates are risk based (based on the borrowers credit) although the maximum rate charged may not exceed 3% over Prime.

My firm requires a long term loan. Can the BCF help? The term of any loan under the BCF Loan Guaranty/Participation Program may not exceed five (5) years. However, longer term capital is provided through our wholly owned SSBIC subsidiary, Triad Capital Corporation