“Eligible business” means a business that, at the time of the initial qualified investment in the company:

1. Has fewer than 250 employees;
2. Has no more than $15 million in Net Income from the preceding tax year;
3. Has its “Principal Business Operations” in the State of Rhode Island; (“Principal Business Operations” means the location where at least sixty (60%) of the businesses’s employees work or where employees who are paid sixty (60%) of the business’s payroll work. A business that has agreed to relocate employees using the proceeds of a qualified investment to establish its principal business operations in a new location shall be deemed to have its principal business operations in the new location if it satisfies these requirements within one hundred eighty (180) days.
4. Is engaged in industries related to hospitality and tourism, hotels, clean energy, biomedical innovation, life sciences, information technology, software, cyber physical systems, cybersecurity, data analytics, defense, shipbuilding, maritime, composites, advanced business services, design, food, manufacturing, transportation, distribution, logistics, arts, education, or other industries beneficial to the economic growth of Rhode Island and approved by the Corporation.

In addition, business must be in good standing with the State of Rhode Island (be current on taxes, maintain active and valid State licenses, if applicable, and not be a party to any litigation involving the State), and demonstrate the financial ability to repay the loan over time.

If you did not experience 33% or more of revenue loss for the period January 2020 through May 2020 over the same period for the prior year but have experienced any other significant adverse impact due to COVID pandemic, please provide detailed explanation of such adverse impact and the Corporation may approve your eligibility at its discretion.

During the underwriting process the applicant will be required to submit documents including but not limited to payroll reports and financial reports. ECRIF will submit these documents to the Corporation for their approval confirming that the applicant is an “Eligible Business”. ECRIF cannot under any circumstances provide a loan without such approval from the Corporation.

Typical terms of all the loans are as follows:

• Loan Amounts: Micro loans of up to $50,000 and larger loans of up to $1 million 
• Loan Seniority: Loans can be senior or subordinated to existing loans from banks or other lenders
• Loan Duration: Loans will carry a minimum maturity of five (5) years 
• Interest Rate: 
  • 0% for first six (6) months
  • Up to 5% for next two (2) years
  • Up to 8% thereafter until maturity  

Loan Amortization: Flexible

Applications will be reviewed to determine whether the applicant meets all eligibility requirements and selections will be made competitively based on:

• the impact of the business on and its contribution to Rhode Island economy and community
• the impact of the proposed funded activities
• the ability to repay the loan, based on standard metrics of collateral coverage, cash flow projections, and compliance with financial covenants, and
• demonstrated financial need.

Eligible uses of proceeds from the loans include operating expenses, salaries, purchasing equipment and machinery, accounts payable, inventory, rent, refinancing, reopening costs, critical repairs/maintenance, adaptive upgrades, technical assistance, marketing support, paying fees and expenses and general working capital.

ECRIF expects to be able to process and fund a term loan in as little as 45 to 60 days depending on the complexity of the transaction. ECRIF plans on processing and funding micro loans in shorter time frame after it receives complete application as well as “Eligible Business” approval from the Corporation. 

The Rhode Island Small Business Development Fund Program was established by the State of Rhode Island pursuant to R.I. Gen. Laws Chapter 42-64.33, the Small Business Development Fund Act. It is administered by the Rhode Island Commerce Corporation. Enhanced Capital Rhode Island Fund has been certificated as a participant under the Rhode Island Small Business Development Fund Program to provide up to $20 million in loans to eligible small businesses in Rhode Island.

Yes, you may be eligible subject to approval from the Rhode Island Commerce Corporation at its discretion. All investments made the Enhanced Capital Rhode Island Fund have to be preapproved by the Rhode Island Commerce Corporation.

Applications will be accepted on a rolling basis with no specific deadline until Enhanced Capital Rhode Island Fund has been fully invested.

All borrowers receiving loans from Enhanced Capital Rhode Island Fund will have to provide the following reports which shall be submitted to the Rhode Island Commerce Corporation – 

• Average number of full-time and part-time employees per quarter in the year preceding the investment (as reported on the borrower’s 941 reports).
• Total wages and salaries of the borrower paid in the year preceding the loan (as reported on the borrower’s 941 reports).
• Changes in employment and aggregate wages and salaries for the borrower in each year following the loan.
• Aggregate RI personal income taxes withheld by the borrower in the year preceding and each year following the loan.
• Corporate business taxes paid by the borrower in the year preceding and each year following the loan.
• Rhode Island sales and use taxes or hotel taxes collected by the borrower and paid to the State in the year preceding and each year following the loan.