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not your typical business lenders

We're problem-solvers and bridge-builders, and invested in your success

We offer loans, investments, and training to businesses that:

  • See the benefit of having outside advisors
  • Have 12 months of revenue
  • Have a plan that defines how capital will solve a problem or facilitate growth
  • Offer quality jobs and opportunities for workers without four-year degrees

we deliver

  • Flexible capital from a variety of private sources
  • Transparency. You'll know where you stand
  • Customized loans or investments shaped to fit your strategic needs
  • Referrals to network of skilled advisors and resources

commercial loans

For growing businesses with at least 12 months of revenue

  • Loans of up to $1 million (or more with other participating lenders)
  • Flexible collateral requirements
  • Interest-only periods, depending on loan purpose/structure
learn more

Vested for Growth investments

For businesses with strong growth propositions and experienced managers

  • Investments of $100,000 to $500,000 (or higher with partner investors)
  • Non-dilutive and non-controlling growth capital
  • Structures combining various loan and investment tools
  • Repayment based on future performance, not just past record
Go to Vested for Growth website

local food loans

Capital and connections from farm to market

  • Loans up to $1 million (or more with participating lenders)
  • Flexible collateral requirements
  • Interest-only periods, depending on loan purpose/structure
learn more

frequently-asked questions

Our business loans and investments range from $1,000 to $1 million. Request the amount that is most strategic for your business. If your business needs more than $1 million, we may be able to draw upon up to $2 million from other lending partners.
Interest rates on loans are generally between 6% and 10%. Our out-of-pocket expenses, including the UCC filing, are charged at closing.

Vested for Growth investments are more expensive than debt but less than equity. Our out-of-pocket expenses including the UCC filing and our attorney fees, are charged at closing.
We take time to understand where your business is going and what lessons you have learned. We focus more on the present and future than on the past. We look for creative ways to lessen factors that other lenders might see as risk. One way we do this is by referring the business owner with a performance coach.

Even if we can’t approve your request for financing, we’ll refer you to resources customized to your business’s needs and stage of development.
We won't supply financing for the purposes of:

  • Paying payroll taxes or other benefits which are in arrears
  • Paying delinquent business or personal taxes
  • Purchasing or improving residential property or other real estate not used by the owner's business
  • Owners' salaries, draws or equity distribution
We also will not entertain financing requests involving any of the following: gambling; gems or precious metals; pyramid, networking or multi-level marketing schemes; fraternal organizations; adult entertainment or pornography; development, manufacture, sale, or service of weapons for military use; or activity which is illegal under federal, state, or local laws.
We don’t finance or invest in businesses that are organized under franchise structures due to the associated expense and legal complexities of underwriting and performing due diligence on the large and prohibitive legal structures of franchises.
We offer loans or investments only to companies that have been in business for a year. Startups generally need more-intensive support than we can provide.

An exception is if the assets/guarantees to collateralize the financing (another existing business or co-signer) are sufficient to cover all debts.

We define a startup as:
  • a business in operation for less than a year, or
  • one that relocates to a location where it will not retain its existing customer base.
We value your new business and want it to succeed. So we have compiled a list of resources for startups.
Banks offer lower interest rates than ours, so many businesses request loans there first. If a bank has denied your request, knowing the reasons why allows us to more quickly determine if we can be the partner you need.
Our goal is to recommend both volunteer and paid consultants but, depending on your need and/or geographic location, options may be scarce. We also try to recommend more than one resource, so you can factor cost into your choice.

Whoever you choose, you’re free to negotiate a price that fits within your budget. Funds may be available to help defray the costs. Alternatively, if you apply for financing, you can ask that the price of the consultant be added to your request, to minimize upfront costs and spread them over a longer period.
We approach every loan and investment differently. We may secure our loans and investments using personal guarantees, Uniform Commercial Code (UCC) filing on business assets, or mortgage liens on property.

A lack of collateral will affect the pricing of a Vested for Growth investment. A business owner who cannot present collateral, or an alternate way to repay the investment if the business fails, represents a higher risk. We will try to offset that risk with the possibility of a higher return.
Our Business Builder loans are for companies seeking $1,000 to $1 million at fixed interest rates.

If there is more risk associated with your loan, but your business has a strong growth proposition, management team, and gross profit margins above 25%, Vested for Growth may better fit your needs. VFG investments begin at $100,000 and feature structures such as royalty financing, in which the borrower agrees to pay a percentage of future gross revenue. This approach allows us to “price to risk” and partner with businesses that we couldn’t otherwise.
The key question when considering whether royalty is the best fit is how much profit the business will generate with royalty capital? If a royalty financing offer seems expensive compared to what the business can accomplish with the money, it may not be the most strategic option. This is why VFG requires businesses to have gross profit margins of at least 25% to be eligible for royalty financing.

While the pricing of royalty (or mezzanine) financing can vary significantly, it will always be more expensive than debt and less expensive than equity or venture capital. A key benefit of royalty financing is that it allows the business owner(s) to retain 100% ownership and decision-making over the company’s future. What a company pays is tied directly to its gross sales – paying more when it does well and less when it doesn’t.
If refinancing long-term debt would free up additional cash to promote growth or add employees, we recommend you explore that option with bank lenders. While we can refinance long-term debt, it would cost you more than bank financing. If banks decline to refinance your debt, we probably would do the same, as that often indicates a company in need of more internal business controls and problem solving before a refinance can take place.
We don’t refinance short-term or credit card debt unless the business has a high-growth opportunity or other compelling reason that our capital is a better fit.
Yes. Here is a general set of parameters, but individual terms may differ:

Dollar amount
  • $1,000 to $500,000 (term loans are available for less than $10,000).
  • Formula-based lines generally use 50% of account receivables and 25% of “finished goods” inventory.
  • Non-formula-based lines are available if other available assets provide 100% collateral coverage.
Interest rate
  • Typically 10%, but can range from 8% to 12%
Fees
  • 2% origination fee at closing and an annual renewal fee of 1% (minimum renewal fee $100, maximum renewal fee $500).
Security
  • First lien position on all business assets
  • Personal guarantee(s)
Structure
  • Annual renewal
  • Clean-up provision, requiring borrower to reduce the balance to zero for a period of time customized to your business.

your toolbox

Resources for growing businesses and startups

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contact us

We invite you to learn more, or apply for financing, if your company:

  • is located in New Hampshire, and
  • had operational revenue in each of the past 12 months.

Send us an email or call us at (603) 224-6669. Please include your name, the name of your company and a very brief description of what it does, the amount of your loan request, and the best way to reach you.

We’ll do our best to get back to you within two or three business days.

If your company is not located in N.H., please consult the CDFI Locator to find a community development financial institution that covers your state.

If your company is a startup, please visit our Toolbox for helpful information.

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New Hampshire Community Loan Fund
7 Wall Street, Concord, NH 03301
603-224-6669 fax 603-225-7425

Email info@communityloanfund.org

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