How Does a Typical Project Work?

• The owner establishes a business relationship with a lender who considers providing financing if additional collateral or equity can be obtained
• The lender seeks collateral assistance from EXPAND. If approved, EXPAND agrees to provide the lender with the additional collateral security.
• The business owner is required to provide a minimum of 10 percent of the total project costs as equity.
• The business owner and the lender negotiate the financing terms
• When the loan is approved and funded by the lender, EXPAND provides the Collateral Reserve Deposit Account for up to four years
• Personal guarantees of the business principles are required
• Within the first two years of the project, the business owner must strive to create a minimum of one job for every $35,000 of collateral provided by EXPAND
  

For example:



Total Project Costs	Loan Amount	Borrower’s Equity Amount	EXPAND Amount	Total Job Creation Required
$44,000	$40,000	$4,440	$10,000	1
$200,000	$180,000	$20,000	$45,000	2
$333,333	$300,000	$33,333	$75,000	3

How does EXPAND work?	What types of projects are eligible?
Who is eligible?	How does a typical project work?
Return EXPAND page	Apply for EXPAND

You may request information on city of Phoenix business assistance services through our e-mail address, business@phoenix.gov, or by calling at (602) 534-CITY (2489). Please include your full mail address and phone number.