Contract Loan
Contract Financing Loan
This Contract Loan program was designed to help Wyoming businesses have a way to take on larger orders by financing the raw materials. Contract Financing Loans provide liquidity to businesses and the business assigns the proceeds of the contract and raw materials as collateral for the financing. This program was set forth by W.S. 9-12-301 (a)(xi) helping Wyoming businesses scale and compete on a larger scale.
Who is Eligible
- Businesses that require financing to acquire raw materials to fulfill a large contract
Loan Details
- Maximum WBC loan amount of $200,000
- Business must contribute 10% or more of the raw materials costs
- WBC is listed as a co-payee on the contract with the borrower
- Upon final payment of contract, borrower shall pay off principal & interest within 15 calendar days
- Maximum repayment term not to exceed 2 years
Fees & Rates
- Minimum loan origination fee of 1%
- Interest rate range: 4% up to Prime +2
Use of Funds
- Strictly for raw materials to fulfill contractual obligations
Process
- Receive 2 denial letters from banks regarding your request for contract financing
- Gather and review all information covered in the application checklist
- Submit the application including all items on the checklist
- Loan must be approved by the WBC Board of Directors
- Funds disbursed, agreements signed, and the loan is closed