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BACKGROUND
The Welcome Fund provides a source of low-cost capital generally
available to commercial, retail, industrial or non-profit
firms that create significant job growth, located or
planning to locate in Philadelphia.
USES
1) New Construction
2) Property Acquisition
3) Building Rehabilitation
4) Tenant Improvements
5) Machinery and Equipment Acquisition
6) Working Capital
FINANCING
1) Loan amount ranges from $2,000,000 to $50,000,000
in increments of $500,000. One job must be created
for every $50,000 funded within two years of final funding. Some
indirect jobs can be counted to meet the criteria that
one job be created for each $50,000 of loan amount.
2) The term of the loan is three to five years with most loans being
the maximum of five years.
3) Interest rates are targeted to be fixed at half of Prime with a floor
of 2%.
4) The collateral for the loan is usually fixed assets with a loan to
value ratio of 80% and secured by a mortgage. Collateral, however, is
discussed on a case-by-case basis.
PROCESS AND TIMING
1) Loans can take six to eight months to process,
occasionally shorter periods. Interim financing or
bridge loans can be utilized while the Welcome Fund loan
is being processed.
2) The program provides an opportunity for foreign investors to
provide funding to a US business and to receive a provisional visa that under
certain conditions becomes permanent.
3) PIDC staff assists the client to complete the application.
4) PIDC staff evaluates and underwrites the loan request.
5) Following consideration and approval of the loan request by PIDC Loan
Committee the loan would be recommended to the foreign investors.
6) Interested foreign investors,
please contact CanAm Enterprises, LLC at 718-624-7850
FEES
1) Application: $500, payable at time of application.
2) Settlement: 1.5% of the loan amount, due upon settlement.
3) Legal: Varies with transaction, usually $10,000 to $15,000,
payable at settlement.
For more information, contact SAM
RHOADS, 215.496.8132
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