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NCIC seeks to strengthen employment opportunities for businesses in Caledonia, Essex, Orleans Counties in VT and Carroll, Coos, and Grafton Counties, in NH by providing financing under the following parameters/circumstances:

1.      Credit Criteria – NCIC will consider the potential to finance opportunities even when a business shows that one of two primary sources of debt repayment, collateral or cash flow, is slightly below traditional bank’s standard credit parameters/benchmarks and there exists other risk mitigating factors to offset this credit deficiency. Credit approval preference will be given to business financing opportunities that demonstrate adequate cash flow to service existing as well as proposed debt service but may be short on meeting standard bank collateral requirements.

2.      Market Role – NCIC seeks to supplement the traditional bank lending role in the market place and act as secondary source of financing to credit worthy businesses. NCIC does not seek to actively compete with traditional banking institutions in Northern VT and NH nor be the “lender of last resort” where multiple credit criteria deficiencies exist.  

3.      Loan Amount – NCIC seeks to primarily focus on lending opportunities in the range of $35,000 to $200,000 With a maximum amount of 500,000. Smaller loans will at times be considered but when NCIC cannot provide, we will try to refer and introduce alternatives

4.      Employment Criteria – NCIC will seek to actively assist businesses that demonstrate material job creation potential and/or retention along with above average salary profile. Credit approval will be enhanced for those businesses that possess a loan amount request equal to or less than $15,000 per FTE employees retained and/or created.

5.      Pricing – NCIC sets the interest rate based on a calculation of risk. The borrower can work with us to optimize those conditions to keep the rate as low as possible.

6.      Credit Enhancement/Risk Mitigation – NCIC will consider financing opportunities, where both existing collateral and historic cash flow may not quite meet conventional lending parameters/standards, if the following exists: a) credit enhancement is available in the form of guarantees (SBA); and b) the borrower’s credit profile exhibits other major risk mitigating factors including but not limited to material revenue/profit potential supported by confirmed backlog/orders, guarantor strength, management expertise, proprietary product protection, and/or a strong plan.

7.      Portfolio/Risk Diversification – NCIC will seek to spread or reduce credit risk where deemed appropriate by actively soliciting loan participations with other VT and NH economic development agencies. Additionally, NCIC will factor into the credit approval process the overall level of risk associated with particular industries and the current economic environment for those industries. Finally, NCIC’s will also assess the existing level of credit exposure to a particular industry as a percentage of the total loan portfolio to avoid concentration risk as outlined in our lending policy.

For more information, please contact:

    Mark Butterfield
    Business Resource Manager
    802.748.5101 x 2022

Biz Financing Inquiry Form