Machinery and Equipment Loan Fund  (MELF)

Low interest financing  for the acquisition and installation of new or used machinery or equipment, or to upgrade existing machinery and equipment to companies unable to fully finance their projects with equity, bank debt or other public and private sources.

Manufacturing, industrial, agricultural processing, direct mining, and agricultural production operations only

• to acquire and install new or used machinery and equipment which is directly related to the manufacturing or industrial process

• to upgrade existing machinery and equipment which is directly related to the manufacturing or industrial process

• ineligible costs include repair costs for existing machinery and equipment

$5,000,000 or 50% of total project cost, whichever is less

• matching lending sources with a first or shared first lien position with MELF must have either equivalent or longer terms than the MELF loan. Equity is defined as any source not requiring either a first or shared first lien with MELF.
• except for loans to agricultural producers, for each $25,000 loaned, MELF requires that at least one full-time job be retained or created within three years.
• machinery and equipment may be ordered and received, but not installed or operated prior to MELF approval of the loan. Applicant place such orders at his/her own risk.

• fixed interest rate of 5%
• loans are for up to 10 years

• $500 packaging fee
• 1% MELF loan amount due to Economic Progress Alliance at time commitment letter is executed
• 1% MELF loan amount due to DCED at time commitment letter is executed

All loans must be secured with a lien position on the asset being financed. Company guarantee, personal guarantees and other collateral may be required as deemed necessary.

Please contact Larry Morgan for full details and assistance.