BOISE—Idaho Housing and Finance Association (IHFA) is accepting applications for its small business Collateral Support Program (CSP) starting today, Monday, Nov. 28. Under the Small Business Jobs Act signed into law last fall, Idaho received $13.2 million in funds to spur economic development in the region.

 

“IHFA is pleased to help bring the Collateral Support Program to Idaho. This funding will help Idaho’s lenders address a key impediment to small business lending – a decline in asset values,” said Gerald Hunter, IHFA president and executive director. “Small business lending is critical to moving our local economy back on track, and the CSP will be a great resource to assist with this.”

 

The CSP will help Idaho small businesses receive additional collateral funding in the form of cash deposits that will be administered by IHFA but made available through Idaho banking institutions. The funds would be pledged to the lender by IHFA and the small business as security for the qualified loan. When the loan is paid back, the funds will come back to IHFA and would be reinvested in new small business loans. This $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.

The loans can be used to cover a wide variety of purposes, such as start up costs, working capital, business acquisitions and expansions, or construction, among others. Any small business owner employing 500 or less people and authorized to conduct business in Idaho may qualify for the program.

 

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

Idaho Housing and Finance Association, a financial services and housing business organization, improves lives and strengthens Idaho communities by expanding housing opportunities, building self sufficiency, and fostering economic development.