BOISE— Alternative Nursing Services (ANS) in Lewiston is expanding thanks to the Collateral Support Program (CSP), a small business economic development program administered by Idaho Housing and Finance Association (IHFA).

 

The CSP is helping Idaho small businesses like ANS receive additional collateral funding in the form of cash deposits that are administered by IHFA but made available through Idaho banking institutions.

 

Under the Small Business Jobs Act signed into law last fall, Idaho received $13.2 million in funds to increase lending to small businesses through partnerships with Idaho lending institutions. IHFA started accepting applications on Nov. 28. So far eight applications have been received and three have received collateral support from the program.

 

The collateral funds are pledged to the lender by IHFA for the benefit of the small business as security for their qualified loan. When the loan is paid back, the funds will come back to IHFA and will be reinvested in new small business loans. The original $13.2 million allocation for Idaho is expected to support more than $130 million in new private lending in the state over the next five years.

 

“IHFA’s Collateral Support Program is a great program for businesses like mine. We are in good shape and expanding and the CSP gave me the support I needed to get a loan from my bank. I qualified for the loan in every aspect except for the collateral support and with this new funding I will be able to expand, offer our services in more rural areas in Idaho and hire more employees,” said Alternative Nursing Services owner Brandon Beier.

 

The loans can be used to cover a wide variety of purposes, such as start up costs, working capital, or construction, among others, or like in Beier’s case for business acquisition and expansion. Any small business owner employing 500 or less people and authorized to conduct business in Idaho may qualify for the CSP.

 

Alternative Nursing Services received the loan, obtained through Twin River National Bank in Lewiston, to acquire an existing business and expand in Orofino. Currently, ANS employs 329 people and with the expansion, 64 new full-time jobs are being added to the company. The company provides in-home health care to individuals in its various locations in Idaho. Their qualified staff provides in-home visit, shots, assessments, or 24-hour care, depending on each individual’s need.

 

Through the CSP, 20 percent of the value of the loan was deposited in an account at Twin River National Bank as collateral deposit.

 

With offices in four different locations in Idaho, Beier’s business is well-established. He met the loan underwriting criteria from his bank, but because it’s a service based business, fell short on collateral for the loan request. He knew about the CSP and told his bank about it, who then contacted IHFA to become a partner in the program. Within a few days, the Twin River National Bank requested a collateral deposit in Beier’s behalf and IHFA approved it.

 

“The transaction was very smooth from start to finish, and IHFA easily explained the CSP to the bank and trained them to participate in the program,” Beier said.

 

The CSP is offered on a first-come first-served basis to qualified Idaho small business borrowers. Loans must generally first meet all lender’s credit underwriting criteria with the exception of the collateral shortfall, which is what the program covers.

 

The program is a collaborative partnership among the U.S. Department of the Treasury, the Idaho Department of Commerce, Idaho Housing and Finance Association, and the Idaho Bankers Association. Small businesses interested in the CSP should contact their current lending institution first and ask about the program. If a lender is a CSP participant, it will apply to IHFA for a collateral support deposit on behalf of the small business. If a lender is not a program participant or is unaware of the program, please contact IHFA directly for a referral at coryp@ihfa.org, 208-331-4725, or visit the “Small business loan programs” at www.ihfa.org for more information.

La Asociación de Vivienda y Finanzas de Idaho, una organización empresarial de servicios financieros y vivienda, mejora las vidas y fortalece las comunidades de Idaho al ampliar las oportunidades de vivienda, generar autosuficiencia y fomentar el desarrollo económico.