Loan Programs
Jacksonville Small and Emerging Business Capital Access
Applicants for a Jacksonville Small and Emerging Business (JSEB) Capital Access loan must have a transportation-related contract and have current certification as a DBE by any agency applying DOT certification guidelines (49 CFR, Part 23 and 26) or by the U.S. Small Business Administration Section 8(a) Program; Small Disadvantaged Business (SDB); HUBZONE Empowerment Contracting Program; and Service-disabled Veterans.
Start-up businesses are not eligible to apply for the Capital Access loan. It is recommended that a business have at least a three-year past performance history before applying to the program. Start- up businesses are advised to apply to the Small Business Administration for financing.
Short-term working capital is provided in the form of a revolving line of credit for which the primary collateral is accounts receivable arising from the contracts or subcontracts being financed. The maximum line of credit is $750,000.
Essential Capital Finance, Inc. administers the Capital Access loan. Loan documentation, processing, and loan servicing is performed by Essential Capital which offers the line of credit.
Borrowings under the lines of credit are to meet the short-term costs of performing the contract(s) being financed. Due to the CAPITAL ACCESS LOAN structure and the short-term nature of borrowings, funds are not available for: contract mobilization; equipment purchases or other long-term uses; refinance of existing debt; payment of non-current taxes; distributions or other payments to stockholders.
Funds may be borrowed against each invoice of the contract(s) being financed. Repayment occurs as the project owner or prime contractor pays the invoice. The payment is made jointly to the borrower and to Essential Capital, which repays the amount borrowed against the invoice and transmits the balance to the borrower.
Borrowings under the line of credit bear interest at the prime rate as published daily in the Wall Street Journal, adjusted on the first day of each calendar month plus one and 3/4's points.
A line of credit normally covers a one-year period and one or more renewals may be requested. Term can be less than one year. The maximum length of time in the program is five years.
To apply, contact Essential Capital at 904-398-9411.