New Hampshire Direct Financial Incentives
The New Hampshire Business Finance Authority (BFA) manages a series of loan programs that combine bank and BFA financing with cash or guarantees for small and large businesses. Business loan programs administered by the BFA include small-business loan guarantees, the Capital Access Program, the Guarantee Asset Program, and the Working Capital Line of Credit Guarantee. In addition, the BFA offers finance programs designed to help local or regional economic development organizations recapitalize or expand to stimulate business movement to the state.
The MerchantBanc (formerly the New Hampshire Business Development Corporation) is a venture-loan program available to companies able to support a subordinated debt investment structure. Funds are used for growth financing for rapidly growing companies for which bank financing is premature and that are too small to qualify for venture capital. Loans range from $250,000 to $1 million, and have a seven-year term often with interest only for the first two years.
Recognizing the need to help New Hampshire industry improve its competitive position, the New Hampshire legislature created the Industrial Research Center (IRC) in 1992. One of the IRC's distinctive features is the opportunity for New Hampshire-based industrial companies to apply for matching grants funds. It is anticipated that grants will not usually exceed $25,000, and the company must utilize IRC-affiliated technical resources to leverage the company's own capability.
The New Hampshire Export Finance Program facilitates international trade finance for New Hampshire exporters. As an advanced member of the Export-Import Bank of the U.S. City/State Program and as an intermediary for the U.S. Small Business Administration's Export Working Capital Program, New Hampshire's Export Finance Program can help companies of all sizes with export working capital guarantees, export credit insurance (foreign receivables), and foreign buyer credit on the sale of capital goods, projects, and services. In addition, the program assists exporters and technical-service providers to help them work with the U.S. Trade and Development Agency (TDA).
Privately sponsored development credit corporations:
Granite State Development Corporation is a private, nonprofit certified development corporation that can provide SBA 504 loan funding to qualified firms. Use of proceeds must be for long-term fixed assets.
Northern Community Investment Corporation, a private, nonprofit development organization, provides direct loans, loan guarantees, and equity investments in fixed assets or working capital for new or existing businesses.
Concord Regional Development Corporation (CRDC) serves as the SBA-approved 504 certified development company (CDC) for qualified businesses in Belknap, Grafton, Merrimack, and Sullivan counties. The main function of the CDC is to market, process, originate, close, and service SBA 504 loans.
The New Hampshire Community Loan Fund administers the Working Capital Program, which provides loans of between $500 and $5,000 to small businesses. To be eligible for a loan, the company must join a "small loan group" - usually part-time, home-based sole proprietorships. The Institute for Cooperative Community Development administers the SBA microloan programs for loans between $10,000 and $25,000 for New Hampshire-based businesses.
Economic Revitalization Zone Program:
New Hampshire offers a tax credit against corporate income tax.
Job Grants Program:
This program offers cash grants in certain regions of the state based on hourly wage.
Coos County Job Creation Tax Credit:
This is a $1,000 tax credit for each new full-time employee hired in Coos County, which is in northern New Hampshire.
New Hampshire State Contact:
New Hampshire Business Resource Center
N.H. Dept. of Resources and Economic Development
P.O. Box 1856
Concord, NH 03301-1856
(603) 271-2591 Fax: (603) 271-6784
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.
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