The BDCRI provides gap financing to help companies in Rhode Island and nearby Connecticut and Massachusetts grow and expand employment. We do this in participation with senior lenders by financing in the form of junior or subordinated debt and in, some instances, equity.

Since primary lenders view our subordinated loans and equity investments as capital, our borrowers can increase their total debt with their senior lender's support.

We also provide direct funding to companies not yet bankable, but which have the potential to become bankable.

Click here for our guide to BDCRI financing
Haz clíc aquí para nuestra guía al financiamiento de BDCRI

Loans We Provide

Most often, BDCRI financing takes the form of :

		Term loans

		Bridge loans

		Lines of credit

		Equity investments

		Any combination of the above

We also provide SBA 504 loans for the purchase of land, buildings, and equipment through the New England Certified Development Corporation, an affiliate of BDC New England.

Uses of Our Loans

Borrowers use BDCRI loans for:

		Working capital

		Product development

		Fixed asset purchases

		Financial restructuring

		Acquisition of existing businesses

Loan Features

Following are typical characteristics of BDCRI loans:

	Non-SBA Guaranteed Loans	SBA 7(a) Guaranteed Loans	SBA 504 Loans
Maturity	1 - 10 years	1 - 20 years	Equipment: 10 years Real estate: 20 years
Total loan size	$100,000 - $2,000,000	Maximum of $2,000,000 guaranteed up to 75%	For projects starting at $500,000
Application or packaging fees	Yes	Yes	No
Rate options	Fixed or floating	Fixed or floating	Fixed rate on 504 Program component
Collateral/guarantees required	Generally	Yes	Yes
Prepayment fee	Generally	No	Declining penalty for first 5 or 10 years, depending on maturity

Click here to learn what we require of borrowers