Businesses these days are having a harder time finding sources of and qualifying for needed capital. The Community Development Finance Authority has several programs that can help New Hampshire businesses looking for financing opportunities.Expansion. New Equipment. New Construction.Are you a New Hampshire-based business that is looking to finance the purchase of property, land, equipment or new building construction? If so, we have funds available through the federal Community Development Block Grant (CDBG) Economic Development Program. Annually, this program has up to $4 million available, of which individual businesses in most New Hampshire communities have access up to $500,000.If you are interested in these funds, we recommend that you call CDFA directly or reach out to your local Regional Development Corporation (RDC). Typically CDBG Economic Development Funds are granted to a own and/or county, sub-granted to an RDC and then loaned to a business. For each $20,000 awarded, the business must hire one new employee and offer competitive salaries and benefits.Energy Retrofits. Equipment Upgrades. Energy Audits.Are you spending too much money on your energy bills? Are you looking for ways to conserve energy? We have a low-interest loan program for New Hampshire businesses and nonprofits to help finance energy improvements and renewable energy projects in their buildings.The Enterprise Energy Fund is a partnership between CDFA, New Hampshire Community Loan Fund, and The Jordan Institute. Through the American Recovery and Reinvestment Act and the New Hampshire Office of Energy and Planning, we have $3.5 million available to help businesses reduce their energy consumption and costs.Loans range from $10,000 to $500,000, with rates for commercial businesses ranging from 2.75 percent to 4 percent. Financing packages will be structured so that the total anticipated savings in energy costs equals or exceeds the total loan repayment.A portion of the funds will be used as grants for energy audits.The program will help fund a range of projects including, improvements to the building’s envelope, including air sealing and insulation in the walls, attics, and foundations; improvements to HVAC equipment and air exchange; installation of renewable energy systems; improvements to lighting, equipment, and other electrical systems; and conducting comprehensive, fuel-blind energy audits.Donations. Tax Credits. Leverage.Is your business being asked to support nonprofits in your community? One way to get a big bang for your buck is to utilize our Tax Credit Program. Hundreds of savvy New Hampshire businesses, who believe in supporting their communities, are already leveraging their donations and receiving tax credits in return.Our Tax Credit Program awards $5 million in New Hampshire State Tax Credits to nonprofits throughout our state. These nonprofits then sell the Tax Credits to businesses that expect to have a tax liability in New Hampshire as a way of raising needed capital for projects. In exchange for their contribution businesses can take 75 percent of the donation as a credit against their New Hampshire business taxes (Business Enterprise, Business Profits, and Insurance Premium Taxes). In addition, these businesses may be eligible to claim a portion of the contribution as a charitable deduction for federal purposes. The net cost to a business can be 15 percent of the donation. For instance, a business that makes a $10,000 cash investment into one of CDFA’s approved projects will receive a tax credit in the amount of $7,500. After federal and state tax benefits are accounted for, the contribution may only cost the company $1,500. This is an easy, efficient, and proven way to leverage a business’s charitable giving.We encourage businesses to reach out to us for any of these opportunities. This is just a sampling of financing options and programs that we have available. We work with New Hampshire businesses, nonprofits, and municipalities.Community Development Finance Authority 14 Dixon Avenue Concord, NH 03301 603.226.2170 www.nhcdfa.org Follow us on twitter @nhcdfa, or become our fan on Facebook NHCDFA.
This article appears in the April 23 2010 issue of New Hampshire Business Review