After establishing a history of monthly on-time payments, BCF will credit the closing costs to the remaining principal balance of the loan. This credit reduces the total outstanding balance, allowing borrowers to repay the loan more quickly and pay less interest over the remaining term.

All approved loan applications will be automatically evaluated for eligibility in this program. If you are eligible for the program, the BCF Lending Team will notify you as part of the Term Sheet, which will include details on the closing costs to be credited after your 6th consecutive monthly payment.

Borrowers must meet the following criteria:
• Be approved for a BCF Business Loan or Line of Credit
• Be enrolled in Auto Pay
• Make six (6) consecutive monthly payments on-time after funding
• At least 50% of the ownership must be held by individuals classified as LMI, with incomes at or below 80% of the Area Median Income (AMI) for both the borrower's home address and the relevant geographic area.

Illustrative Examples:

Scenario 1: Sole guarantor
A sole proprietor is both the borrower and guarantor, and their annual gross income is $75,000, which is below 80% of the Area Median Income (AMI) for their area. Ownership: 100%.

Outcome for Scenario 1: Since the sole proprietor's annual gross income of $75,000 is below 80% of the Area Median Income (AMI) for their area, they qualify for the loan closing cost grant.

Scenario 2: Multiple guarantors
• Guarantor 1 Income: $75,000 (eligible for LMI, as it is below 80% AMI); Ownership: 40%
• Guarantor 2 Income: $95,000 (not eligible for LMI, as it exceeds 80% AMI); Ownership: 60%

Outcome for Scenario 2: Although Guarantor 1 qualifies for the loan closing cost grant (because their income is below 80% of AMI), Guarantor 2 does not qualify (as their income exceeds 80% of AMI). Since Guarantor 2 owns more than 50% of the business, BCF will not cover the closing costs. However, if the guarantor with 50% or greater ownership meets the LMI criteria, they would be eligible for the grant.