Loan Guarantees

The Northeast Alliance has the structure, flexibility, and risk tolerance to provide supplemental loans or guarantees to assist banks in approving loans. If a customer has a loan that is economically feasible but weak in collateral, we may be able to support the collateral with a loan guarantee.

• Guarantee amount up to 50% of loan to a maximum of $50,000
• Maximum term is five years.
• Our policy is to secure the guarantee with 50% cash. Funds earmarked for guarantee are held in traditional accounts at local banks.
• Fee of 2% of guarantee amount is charged to the Bank at closing.
• An annual fee of 1% of guaranteed portion (on the declining balance) is charged to the Bank for the five-year term.