Video Lottery Terminal – Small, Minority And Women-Owned Business Loan Program


Loans to small businesses:

    • $25,000 – $500,000
    • Priced at below current market interest rates
    • Eligible purposes: business acquisition, commercial real estate acquisition, building improvements, equipment purchase, leasehold improvements, business start-up costs, refinancing of existing debt, except refinancing where the lender is in position to take a loss, and working capital
    • Eligible entities include start-ups and existing businesses
  • Use of standard underwriting practices; factors to be considered include repayment capacity, financial strength of the company and guarantors, industry and management experience, and collateral protection
  • Settlement facilitated with the assistance of outside attorneys
  • Post-closing: Servicing, loan monitoring, billing, and collections administered by AAEDC financial services staff


Loan Requirements:

  • Personal credit (640 or above)
  • Historical Debt Service Coverage Ratio (DSCR) of 1.00x or projections with assumptions showing 1.00x DSCR
  • Collateral required when available
  • All owners over 20% must personally guaranty the loan
  • Life insurance on owner/guarantor where no valid succession plan is in place
  • Minimum equity injection of 10% for start-up businesses
  • Business plan required for start-up businesses


Click here for more information on VOLT.