Business Loans

The Alternatives Credit Union is committed to small businesses. We want your business to succeed, and we are looking for long term lending and deposit relationships. We ask for comprehensive information for the application, and have provided a list of requested items below. The information is needed to enable us to make a responsible loan decision. As time-consuming as it sometimes is to compile, our experience shows that careful financial planning can be a significant factor in the success of a business.

 

PLEASE NOTE: Alternatives is a regional credit union. We offer business loans to businesses located in Ithaca, Tompkins County and the surrounding counties of Schuyler, Chemung, Tioga, Broome, Cortland, Cayuga and Seneca.

What you will need to apply for a Business Loan at Alternatives:

Loan application form

Personal financial statement

Business plan (including all necessary financial statements)

For existing businesses, three years of financial statements and tax returns

Support in idea development and compiling these important documents is available through our Business CENTS® Program.

KINDS OF LOANS

Women & Minority Subsidized Loan
Thanks to funding from Empire State Development Agency, Alternatives can now offer a subsidized loan for women and minority-owned businesses. This loan will assist women and minority borrowers who have a minimum of one year in business and are looking for assistance with continued growth and expansion.

Loan Information:

New loans only, no refinances

Term: Up to 3 years

Rate: 6% Fixed

Maximum Amount $25,000

Equity Requirement: 10% of loan amount

Borrower must receive Technical Assistance related to their business from our Business CENTS program or another approved source. Not available for non-profits.

SBA MicroLoans
The Microloan Program provides access to credit for small businesses and start-ups that might otherwise have difficulty obtaining financing. We receive funding for our Microloan Program from the Small Business Administration (SBA). The Microloan Program is unique in that it provides funding as well as free technical assistance that is often needed by small business owners. Comprehensive technical support is provided through our Business CENTS® Program. Microloans may not be used for refinancing existing debt. Maximum loan amount is $35,000.

Small Business Administration (SBA) Guaranteed Loan
Minimal collateral, credit concerns, and higher risk business ideas can create problems when trying to get a loan. If this is your situation, we can offer you a solution. An SBA loan can be used for general business purposes, the purchase of assets or real property, and working capital.

Working Capital Loan
Sometimes business growth calls for cash to keep up with demand. A Working Capital Loan meets this need. With no collateral necessary, this loan may "save the day" and see a business through growing pains.

Line of Credit
Cash flow is often an issue in business. Whether your need is inventory or funds for day-to-day operations, look towards a Line of Credit. Secured by business assets, the Line of Credit makes funds available when the need arises. Every small business and non-profit should have a Line of Credit in place for opportunities, emergencies or to cover inadvertent overdrafts.

Business Term Loan
Need funds to purchase equipment, inventory and furniture or business assets? The Business Term Loan, secured by business assets, will enable you to borrow funds while at the same time setting up a budget payment that won't change every month.

Grant Anticipation Note
For non-profits who find delays in disbursements of approved funding contracts.

Commercial Mortgage
If you've found the perfect place to start or expand your business and you need to purchase or improve the property, Alternatives offers a Commercial Mortgage to meet your needs.

Community Facility Loans
This program, guaranteed by the U.S. Department of Agriculture, Rural Development Department, provides a way for non-profits to purchase fixed assets. The guarantee can be up to 90% of the loan up to $1,000,000. Community Facility Loans are available to non-profits in communities with a population under 50,000.

GO Fund Loan
The Go Fund Loan is designed specifically for the "high risk, high reward" business. This specialized loan product has below market interest rates plus a fee based on sales to create the loan payment. A Go Fund Loan is an excellent way to obtain working capital.

Share Secured Loans
If you would rather not touch the money in your savings or certificate account, but need capital, consider a Share Secured Loan. Have money for business needs without losing interest on funds invested at Alternatives. Share Secured Loans are also a good way to build a credit record to support future borrowing.

LOAN INFORMATION
Call for current rates: 607-273-4611 ext. 723

DESCRIPTION	TERM	AMOUNT	COLLATERAL
Unsecured	36 months	20,000	Signature
Secured	60 months	100,000	Signature
Line of Credit	N/A	20,000	Signature
Secured Line of Credit	N/A	100,000	Shares/Equipment
SBA Guaranteed Loan	84 months	400,000	Equipment
Commercial Mortgage	144 months	150,000	Mtg
SBA Community Mortgage	240 months	500,000	Mtg

+ Rate is set at 2% above what the shares earn.
Please note: All business loans carry a 1% application fee.

What we look for in a business loan applicant:

• Steady income sufficient to repay the loan and other obligations.
• A good past credit history.
• Sufficient collateral that is readily identifiable, with a wide market of resale.
• Financials in line with or exceeding peers.
• Owner equity in the business.

Often, a business cannot provide the level of information we request. In that case, we will review the loan with the information presented. If the information provided is not sufficient to grant the loan, we reserve the right to require additional information. The loan may be considered for approval on the basis of the owner(s) personal credit.

To provide a complete application, please enclose the following items:

1. Three years financial statements and tax returns, as well as current (to within three months) financial statement (including income statements, balance sheets, and supporting schedules). Statements must follow Generally Accepted Accounting Principals. For loan requests of $50,000 or more, financial statements must be accompanied by an accountant's review or audit — a compilation is not acceptable.
   
2. A cover sheet for the business loan request — you may use the SBA business loan application.
   
3. A Personal Financial Statement from each principal of the business.
   
4. A description of any collateral offered or purchase receipts or price quotes for new equipment.
   
5. Pro-forma projections month by month basis for two years or the length of the loan, whichever is less.
   
6. Business plan detailing the structure of the business (sole proprietorship, partnership, corporation and ownership), a description of the product or service offered, the marketing strategy, an evaluation of the competition, a listing of trade references, and the names of the business principals.
   
7. If the business is a corporation or partnership, include a copy of the certificate of incorporation or partnership papers, and a resolution from the Board of Directors or partners authorizing the loan request and designating who will sign loan papers.
8. Personal guarantee(s) of the owner(s) of the business are required for each business loan. The requirement may be waived, for non-profit businesses only, at the discretion of the Credit Union. A personal guarantee demonstrates the signer's commitment to seeing the business succeed, and means that the principals are personally responsible for the loan payments. This guarantee is requested by other financial institutions as well, and is a legal requirement for credit unions.

The Credit Union can provide resource materials on business planning and analysis, and we run a series of business seminars. For members with credit needs beyond our limits and terms we will do loans with the Small Business Administration (SBA) and can aid in placing loans with larger institutions.