Business Loans

The GLDC receives applications on a case-by-case basis from businesses in the City of Greenville that are in need of gap financing for starting operations or expanding existing operations. A thorough review of the financial history, current financial condition and financial prospects of the business will be used to determine need and eligibility.

Eligible Businesses

  • Must be located in the City of Greenville.
  • Must have a current City of Greenville business license.
  • Must obtain the majority of financing for the project from other sources.

GLDC Loan Terms

  • Maximum loan amount of $200,000.
  • Maximum term of five years.
  • Interest rate of 0 -1%.
  • Interest only payments subject to negotiation with GLDC Board.
  • Loan will be collateralized as determined by the Board. Personal guarantees will be required of any and all individuals who own 20% or more of the business.
  • Subordination by other creditors, where appropriate.

Business Closing or Default

In the event of default or closing of the business, the remaining balance will be due in full. Occurrences of default include, but are not limited to, the following events:

  • The business closes
  • The business fails to maintain regular operating hours
  • The business modifies its operation and no longer meets current eligibility requirements.
  • Any loan payment is ten (10) days past due.
  • There is another default in the loan documents.
  • There is a material change in the ownership of the business.

Application Process

Potential applicants will be initially evaluated by the City of Greenville Economic Development Department. City staff will review all applications to ensure that eligibility criteria are met and forward the application to the GLDC Board for review and consideration. The application must be assembled according to the following outline. Incomplete applications may not be accepted.

Board Review and Approval

The GLDC Board of Directors generally meets on the second Thursday of every month at 8:00 AM in the ninth floor conference room of Greenville City Hall. In order for the application to be considered by the GLDC Board, the applicant or his/her appointed representative must be present at the meeting.

Application Requirements

  1. Provide information that describes the business and details of its current financial condition. The information should include:a. General information (including historical information) that describes the business;b. Financial statements (income statement, balance sheet and cash flows, current and for the last three (3) years);c. Business tax returns for last three (3) years;d. All other information needed to fully explain the need for the loan and to address the basic eligibility requirements.
  2. Provide background information about the applicant and guarantors, including business experience, if any, and all other relevant information that the GLDC may need to consider while reviewing the application. Describe the corporate or partnership structure as applicable. Provide personal financial statements for all applicants and disclose any defaults on other loans.
  3. Give a detailed description of the state of the business and the proposed uses of the loan funds. Include a business continuation plan if already operating.
  4. Provide at least a three-year forward looking cash flow projection– along with sources and uses statement – showing the project’s ability to service its debt. Also include any and all information submitted to any financial institutions. This may be included in the business continuation plan referenced in 3 above.
  5. Provide an estimate of days/months for completion of anything associated with the eligible uses of the loan.
  6. May require three personal credit references and three for the business. These are to be from third parties (not from relatives).
  7. Please disclose whether any applicant, guarantor, or any other person involved with the project is currently engaged in any civil or criminal proceeding. Provide a list of any judgements against or bankruptcies involving any such applicant, guarantor or other person during the last five years. Also disclose whether any individual involved with the project has ever been charged or convicted of any felony or currently is under indictment. Please supply detailed information.
  8. Provide a completed, signed, and dated letter to the GLDC that states the name, address, and telephone numbers of the applying entity. Provide the name(s) of the applying entity’s representative(s) and any other financial guarantors of the business and their addresses and telephone numbers if different from above.

Evaluation Criteria

The GLDC Board will evaluate each loan request using the following:

  • Job creation and/or retention potential.
  • Uniqueness of the business or impact on a street, area or community.
  • Potential to sustain the viability of the commercial area in which the business is located or serve as a catalyst for other development.
  • Review of the project’s business plan and likelihood of feasibility of the project including the use of funds.
  • Likely effect on ad valorem taxes, business license fee revenues and special fees.
  • Other aspects, if any, of the public good furthered by the project.
  • The loan applicant’s concerted diligent efforts to secure financing from traditional market sources.
  • Determination of the anticipated level of risk to the GLDC.