Gap Financing

3s Artspace exterior

Gap Financing

Fund the missing piece in a loan package through the BFA and our network of local lending partners.

When a NH business needs a loan that is outside the banking box, call the BFA and explore our gap financing options.

Banks can usually provide most of the financing a company needs, but sometimes a little “extra” is needed. The BFA provides direct loans to fill these gaps through New Hampshires’s network of Regional Development Corporations (RDC). The RDC network provides risk-tolerant loans to companies in every corner of the state. Typically flexible with key terms, such as collateral coverage, the BFA and RDC partnership is an essential tool for financing New Hampshire companies small and large.

Eligibility

  • Varies by Regional Development Corporation
  • Loan size typically $10,000 to $1,000,000

How to Apply

  • Apply online or call BFA with any questions
  • Credit decision made jointly by BFA and RDC partner
3s Artspace exterior

3S Artspace (3S)

3S Artspace (3S) in Portsmouth was founded in 2011. The non-profit was created to support the arts and artists by establishing a location in Portsmouth which would bring high-quality and original art experiences to the area.

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Frequently Asked Questions

What is the maximum amount of gap financing available?

While there is no official maximum, typical transactions of this type range between $50,000 and $2,000,000

What is the approval process for gap financing?

Each region of New Hampshire is served by a Regional Development Corporation (RDC). RDC’s borrow funds from the BFA to provide gap financing to borrowers in their region. For a gap financing transaction to be approved you must seek approval from the RDC’s board of directors. The BFA then provides the final approval after receiving all pertinent information from our RDC partner. The BFA is happy to make the introduction to the appropriate RDC. Simply reach out to us online or call us directly any time.

What are the reporting requirements when obtaining a gap financing loan?

Each lender in the Regional Development Corporation has different requirements. However, most request monthly and/or quarterly financial statements as well as copies of the borrower’s annual tax returns. An up-to-date personal financial statement for the borrower’s personal guarantor is also typically required.

What are the interest rates on these gap financing loans?

Since the majority of these loans are provided by BFA’s partners, the BFA is not setting the final interest rate. However as these loans are typically riskier than your standard bank loans, expect to pay an interest rate marginally higher than a conventional bank loan.

What are the collateral requirements on these gap financing loans?

A “gap” in a loan structure usually occurs due to a collateral shortfall. As such most gap lenders have no fixed collateral requirements. However, this will vary case-by-case based on the overall risk inherent in the transaction.

Is residential real estate eligible for gap financing?

No, residential real estate is not eligible.

How do I apply for gap financing?

The application process for gap financing varies on whether the loan is being provided by the BFA directly or via one of our partners. The best approach is to contact us online or via telephone to discuss the opportunity.

Are there minimum job creation requirements for gap financing?

There is no fixed number of jobs that must be created and/or maintained. However, the total economic impact must be sensible in relation to the size of the loan and the risk of the transaction.

Are there any application fees?

The BFA charges no application fee for any program.

Are start-ups eligible?

Start-ups are technically eligible but typically do not meet either the underwriting standards for the BFA’s gap financing options.

Are non-profits eligible?

Yes, non-profits are fully eligible assuming they meet all other requirements.

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