August 27, 2019
The Rhode Island Capital Access Program (RI CAP) is a unique small business loan program for loans up to $750,000 for businesses located in RI. It simplifies borrowing for local businesses and provides access to hard to find capital. Twenty banks and credit unions have signed up as partners to extend credit to bring more capital to companies in Rhode Island.
RI CAP helps to de-risk small business loans for participating financial institutions by strengthening the collateral backing the loans. CAP can be used for term loans and lines of credit to both for-profit and non-profit businesses with fewer than 200 employees located in RI.
The participating financial institution negotiates the loan terms directly with the borrower. BDC Capital manages the program in participation with the State of RI.
To enroll a loan, the lender completes a 2-page enrollment form, collects a deposit from the borrower that is typically 3%, and uses their internal credit approval and closing documentation. The borrower’s deposit is then matched at either 150% or 200% by the State of RI and the total amount is deposited in the participating financial institution to provide additional collateral for the loan.
The cash reserve at the participating bank or credit union reduces risk and helps attract new business customers.
For more information, contact:
Carol Cedrone Brennan
(413) 237-6648 (cell)
30 Exchange Terrace, 4th Floor
Providence, RI 02903
500 Edgewater Dr., Suite 555
Wakefield, MA 01880
RI Capital Corp