GLBF is a financing resource funded by federal government funds allocated to the city through the Community Development Block Grant program. GAF has been authorized by the SBA to operate a Small Business Lending Company to make SBA guarantee loans to eligible small businesses that create jobs and make an investment in the community. The GLBF was established to provide a safety net for businesses that are turned down for borrowing from traditional SBA lender such as banks. GLBF does not compete with banks, but offers loans to qualified businesses where the terms needed and risks assumed are acceptable to the SBA but not profitable or practical for banks. In the event of default, the SBA purchases that portion of the unpaid balance of the loan from the lender.
Interest rates are at or below market.
The term of each loan is determined by the use of funds. Collateral will be taken, if available, but may not be necessary in certain cases. Loan proceeds may be used for most legitimate business purposes including permanent working capital, machinery and equipment, land and building. These fees and costs can be financed as part of the loan. Other merits of the project will also be evaluated including project feasibility, applicant qualifications, borrower need and fund availability.