NH BFA Loan Guarantees

NH BFA Loan Guarantees

Provides credit enhancements for lenders financing growing New Hampshire businesses with stronger loan and credit-line guarantees.

The New Hampshire Business Finance Authority Loan Guarantee program provides credit enhancements through participating lenders to help finance New Hampshire companies planning operational growth. The program offers two guarantee structures: term loans receive a guarantee of up to 90% of the loan amount with no published maximum dollar ceiling, and lines of credit receive a guarantee of up to 75% capped at $2,000,000. This is a loan guarantee instrument, not a grant — the business still borrows from its bank and repays principal and interest, while NH BFA's guarantee reduces the lender's credit risk, enabling financing that might otherwise be unavailable.

Eligibility for term loan guarantees requires a loan-to-value ratio of 80% or better verified by a recent appraisal, and the applicant company must employ at least 20 people. Line-of-credit guarantees require the facility to be secured by accounts receivable, inventory, or fixed assets, again with a minimum of 20 employees. Startups typically do not qualify due to the credit and collateral requirements. Both for-profit companies and nonprofits are eligible if they meet the credit criteria. Residential real estate is excluded from collateral. A guarantee fee of 1% of the guaranteed portion is assessed at closing and annually thereafter, paid by the borrower through the lender.

Applications are submitted by the participating lender, not directly by the business, via the NH BFA online portal or by calling 603.415.0190. Final approval requires sign-off from the BFA board and the New Hampshire Governor and Executive Council, which introduces a longer timeline than the CAP program. Companies planning to use this guarantee should engage their bank early, secure a current appraisal, and confirm their employee count meets the minimum threshold before initiating the lender-driven application process. The program is active as of 2026.