• Initial loan/investment will be between $100,000 and $300,000 with a maximum of $500,000 outstanding to any one company.
• A company must have its principal business location and the majority of its employment in the Erie County labor market area. Funding for businesses not in Erie County can be considered provided a substantial benefit to Erie County can be demonstrated and the neighboring county matches the funding to be provided.
• Funding must be 40% or less of the total being funded at the present time. Due diligence will generally not begin until the other funding sources have been identified and expressed interest.
• Loan/investment will not exceed $100,000 per full-time job to be created over a three year period.
• Borrower must be eligible under Niagara Region Ventures Fund guidelines.
• Funding may not substitute for private capital or other financing when available on commercially reasonable terms and conditions.
• Loans may be for up to 10 years. Possible initial principal and/or interest payment deferral period not exceeding half the loan term may be available.
• Loans will generally require warrants or other non-equity kickers.
• Personal guarantees by the principals and collateral liens may be negotiated but are not mandatory.

Eligibility

An eligible company will be a new or existing for-profit business which has a technology product or service that is already substantially developed and expected to generate commercial revenues within 12 months. Specific applicant eligibility will be determined in accordance with the approved guidelines for the Niagara Region Ventures Fund’s funding programs. Preference will be given (1) to companies based on technologies developed at local colleges and universities, medical and research facilities, and (2) to businesses that have previously received venture funding from other public agencies.

Restrictions

Generally, funds cannot be used to move existing jobs into or out of the local labor market area.