Most frequent questions and answers
No. The BCF makes some loans directly to borrowers. However, 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. 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. The borrower’s bank can contact the BCF at (212) 243-7360 to learn about the BCF. Or, you can provide the contact name at your bank, and we’ll be glad to call him/her to start the process.
No. All that is required is a relationship within the last 12 months with an NMSDC national or regional corporate member.
Yes. The BCF’s mission of providing access to capital for NMSDC certified minority business enterprises is further enhanced through Strategic Alliance Partners and subsidiaries that offer alternative products that are 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, etc.
The BCF does not provide financing to non-profits or give grants. The BCF provides commercial loans to for-profit NMSDC certified minority business enterprises and expects loan payments to come from internally generated working capital, cash flow, and earnings.
If a loan is made through participating lenders, then 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 the preparedness of the borrower. The BCF’s decision to participate in 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:
- 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 three years
The lender may require additional information.
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 borrower’s credit).
The term of any BCF loan may not exceed five (5) years. However, longer term capital is provided through our wholly owned SSBIC subsidiary, Triad Investments, LP.