The City of Cleveland’s Economic Development Administration Loan Program (EDA Loan) offers long term, fixed rate, and below market financing to for- profit businesses. EDA funds can pay for 1/3 of the project costs for machinery and equipment, working capital, building construction or acquisition and building renovation. The borrower can finance up to $200,000 for working capital and between $35,000 and $500,000 for other uses. The principal payment is deferred for six months on all EDA loans (interest only payments for six months). The amortization term period will begin after six months.
To be eligible for this loan the business must be for- profit and is required to create or retain one full time job for every $35,000 borrowed. The business must inject at least 10% equity and the loan value must be 90% or less. The business must show that a bank would not finance the project, is charging a high interest rate or will only fund a portion of the project. The interest rate of the EDA loan is currently less than 3%. No retail establishments, except grocery stores, are eligible. Job creation may include both retained and created jobs.
For more information on the EDA loan program, contact Michael Elliott, Project Coordinator, at 216-664-4470 or MElliott@city.cleveland.oh.us