The Idaho Prime Loan Program "The Idaho Prime" is a loan program designed specifically with small businesses in mind. This innovative program is a cooperative effort between the Idaho State Treasurer, the Small Business Administration "SBA", and the banking community – helping to make capital available to all small businesses throughout our great state.

When small businesses do well in Idaho, new jobs are generated for our workforce, the economy expands, new tax dollars flow in the state coffers, and we all benefit.

Borrower Information

• Need a loan for one of the following?
  • To start a new business
  • To expand or modernize facilities
  • To purchase equipment, fixtures, and leasehold improvements
  • To increase inventory and working capital
  • To acquire new or existing businesses or franchises
  • To refinance existing debt, under certain conditions
  • To construct or purchase commercial buildings
  
  
• What are The Idaho Prime terms?
  • Loans up to $750,000
  • Prime interest rate – reset every calendar quarter
  • 25 years maximum maturity
  
  
• Do you qualify? SBA borrowers are:
  • Independently owned and operated businesses
  • Businesses that operate for profit
  • Businesses whose annual revenues are less than $6,000,000 or whose number of employees are less than 100
  
  
• What are banks looking for in an SBA borrower?
  • Management ability and experience in the industry
  • Adequate investment (approx. 25% - 30%) by the owner, partners, or corporate officers
  • Ability to repay the loan from historical or projected cash flow and profits
  • Satisfactory personal and business credit history
  
  
• Who should the borrower contact to get started?
  • The Idaho State Treasurer's Office is not involved in the approval process
  • Please contact a participating bank
  
  
• Does your bank participate in the Idaho Prime Loan Program?
  • Please contact the Idaho State Treasurer's Office for a list of participating lenders
  
  
• What does the bank need from the borrower to start?
  • Statement detailing the purpose of the loan and expected use of the proceeds
  • Business Plan
  • Summary of owner's investment in the business
  • Description of proposed collateral
  • Projections of income, expenses and cash flow
  • Current, signed, personal federal tax returns
  • Three years personal federal tax returns
  • Personal resumes on management
  • Copies of articles of Incorporation and By-Laws, Partnership Agreement, or Franchise Agreement and FTC Disclosure Statement, as appropriate
  • If you are already doing business, include the following:
    • History of the business
    • Business financial statements for last three years plus interim period dated within 90 days (balance sheet and income statements with footnotes)
    • Three years of business tax returns
    • Schedule of all business debt
    • Detailed aging of accounts receivable and payable
    • Lease Agreement (if applicable)

Lender Information

• How do SBA loans work?
  • The SBA guarantees up to 85% of loans up to $150,000 and 75% of loans over $150,000 made by any participating bank
  • Your bank forwards application and deals directly with SBA officers
  
  
• What are the benefits to the lender?
  • Qualifies for Community Credit
  • Creates added loan capacity
  • Prime + 7.79% approximate annual return on loans of $150,000 or less
    •   Less Than $150,000 Example
  • Prime + 4.13% approximate annual return on loans between $150,000 and $750,000
    •   Between $150,000 and $750,000 Example
  
  
• When does the lender interact with the Idaho State Treasurer's Office?
  • After full disbursement, mail a packet including the following documents:
  • Completed SBA Form 1086 (hyperlink)
    •  SBA Form 1086
  • Certified copy of the SBA Note (example)
  • $75.00 check payable to Colson Services
  • Calendar quarter letter (stating that the loan rate will reset every calendar quarter)
  
  
• How long before settlement occurs?
  • Settlement typically occurs within 7-10 business days
  
  
•  SBA Form 1086

For More Information

• Submit Idaho Prime Comments or Questions