The Chatham Loan Fund is a tool used to help leverage loans for start-up businesses.
The program was originally administered through Self-Help Credit Union, but has recently expanded to any lender wishing to participate.
The concept is simple: Chatham EDC will take some of the risk away from the lender in hopes to have them approve more loans and/or decrease the interest rate on the loan by providing collateral for a business loan. The Chatham EDC will open a savings or money market account at the lending institution and allow that account to be used as collateral on the business owner's loan.
Chatham Loan Fund collateral is limited to 50% of the total loan amount with a maximum of $50,000 in collateral. The full amount of the investment will stay with that bank until the loan is repaid.
If you are interested in taking advantage of this program, please have the lender contact our organization before you complete a loan application at 919-542-8274 or firstname.lastname@example.org.