Float Loan Overview
PathStone Enterprise Center, Inc. preliminary stipulations for float loan (subject to change at any time)
WHO: Existing businesses who provide goods and services on a contract basis
WHAT: Increase capacity to mobilize and bid on jobs
HOW: One lump sum upfront (less applicable fees) to cover payroll, materials and job related
machinery and equipment costs. There are 2 options for repayment
Repayment period up to 6 months or up to 12 months
Standard PECI interest rates apply
2% commitment fee shall be paid to lender from loan’s proceeds
- Loans up to $50,000 based on percentage of contract amount and business experience
- Uses: payroll, materials, job specific machinery and equipment
- Pre-approval required. Pre-approval expires December 31 of each year. Businesses are encouraged to apply for renewal in January or as soon as possible.
- After repayment, borrower may draw additional loan funds during calendar year without submitting a new application.
Pre-approval Package and Disbursement Requirements include
- Completed application and $100 non-refundable fee
- Personal financial statement
- Proof of work: contracts, letter of understanding
- Completed projects report plus work-in-progress schedule for construction contractors
- 3 years of personal tax returns
- 3 years of business tax returns and financial statements if applicable
- Insurance: commercial work policy (NOT handyman), Worker’s comp, liability
Credit Score: No minimum credit score required.
Other Fees: Attorney closing cost fees plus expenses if applicable.