|| 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.
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.
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.
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.
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.
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.
|| 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.
At a minimum, the borrower needs to provide the lender with the following information when requesting a loan:
Signed personal and corporate income tax returns for the most recent two years. The lender may require additional information.
- 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
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.
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