Loan Guarantees

Bensonwood worker in warehouse

Credit Enhancements & Loan Guarantees

Reduce risk in your portfolio with the BFA’s simple and easy-to-use credit enhancements.

Close more loans and help New Hampshire companies succeed with BFA's flexible credit enhancement tools.

Many good companies are highly credit-worthy and yet slip outside the traditional lending box. Our loan guarantees help you provide financing for companies you believe will be successful in New Hampshire, especially those planning to grow their operations. The BFA can provide up to a 75% guarantee on lines of credit and up to a 90% guarantee on term loans.



Term Loan Guarantees:

  • No maximum dollar amount
  • Must have an 80% or better loan-to-value as evidenced by a recent appraisal
  • Must support companies with at least 20 employees

Line of Credit Guarantees:

  • Maximum line of credit size is $2,000,000
  • Must be secured with accounts receivable, inventory, and/or fixed assets acceptable to the lender and the BFA
  • Must support companies with at least 20 employees

How to Apply

  • All requests for guarantees are submitted by the bank or financial institution to the BFA
  • Apply online or call the BFA at 603.415.0190
  • All guarantees must receive approval from the BFA and the governor and executive council of the State of New Hampshire
J-Pac Medical employee working on machinery

J-Pac Medical

The BFA worked closely with TD Bank under its guaranteed asset program (GAP) to provide up to an 75% guarantee on a $800,000 fixed asset line of credit for J-Pac Medical.

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Frequently Asked Questions

What is the approval process for BFA loan guarantees?

After receiving all pertinent information for the lender, the BFA board of directors will meet and make the approval decision. After that the request goes to the Governor and Executive Council for final approval. Both the lender and the borrower are required to attend the Executive Council meeting when requested.

What if a lender wants to remove or alter the guarantee after it is put in place?

The lender is fully empowered to remove or reduce the guarantee percentage at any time. Upon notification of the change, the BFA’s guarantee fee is automatically reduced by the same amount.

What happens if a lender needs to make a claim for reimbursement for a BFA guaranteed loan?

After the lender has exhausted all reasonable collection efforts and charged off the remaining loan balance, they fill out a claim form along with a loan history report and are reimbursed for the loss after BFA approval.

What are the reporting requirements for a lender utilizing a BFA guarantee?

The lender must supply updated balances of the loan being guaranteed, as well communicate any issues in regards to loan performance. During collection the lender apprises the BFA of collection efforts and expected outcomes to the best of their ability.

What are the maximum loan amounts the BFA can guarantee?

There is no set maximum loan amount for term loans guaranteed by the BFA. However, lines of credit guaranteed by the BFA have a maximum size of $2,000,000.

What are the collateral requirements for BFA loan guarantees?

Any term loan being guaranteed by the BFA must have an 80% or better loan-to-value as evidenced by a recent appraisal. Lines of credit guaranteed by the BFA must be based on a reasonable formula comprised of advance rates on accounts receivable and inventory or additional tangible collateral pledged against the loan.

Is residential real estate eligible for a BFA loan guarantee?

No, residential real estate is not eligible.

How do the guarantee fees work for BFA guaranteed loans?

BFA guarantee fees are equal to 1% of the guaranteed portion of the loan. This fee is assessed at closing and annually thereafter. While the lender is responsible for paying the fee, it is chargeable to the borrower.

How do I apply for a BFA loan guarantee?

Applications for loan guarantees are submitted by the participating lender. You may apply online via the BFA website, or reach out to us via phone or email to start the process.

Are there any minimum job creation requirements for BFA guarantees?

The company receiving the loan guaranteed by the BFA should have a minimum of 20 jobs at the time of closing, or a credible plan to reach that number shortly thereafter.

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 credit or collateral requirements for the BFA’s guarantee program.

Are non-profits eligible?

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