About this programme
The Loan Guarantees Program is a credit enhancement from the New Hampshire Business Finance Authority (BFA) that reduces risk for lenders, so creditworthy New Hampshire companies that fall outside a bank's normal lending parameters can still get financed.
As with BFA's other credit programs, the guarantee is arranged by the lender, not applied for directly by the business.
How it works
BFA guarantees up to 90% of a term loan, with no maximum dollar amount, and up to 75% of a line of credit up to $2,000,000.
BFA charges a guarantee fee equal to 1% of the guaranteed portion of the loan, assessed at closing and again annually.
A lender can reduce or remove the guarantee at any time; BFA's fee adjusts proportionally when that happens.
If a guaranteed loan defaults, the lender must exhaust its collection efforts, complete a claim form with the loan history, and is reimbursed once BFA approves the claim. Lenders must keep BFA updated on loan balances and flag any performance issues.
Who can apply
For a term loan guarantee: the borrower needs a loan-to-value ratio of 80% or better, verified by appraisal, and must have at least 20 employees. There is no maximum loan amount.
For a line of credit guarantee: the line can be up to $2,000,000, secured by accounts receivable, inventory, and/or fixed assets, and the borrower must have at least 20 employees.
Nonprofits are fully eligible if they meet the other requirements. Residential real estate is not eligible.
Startups are technically eligible but typically do not meet the credit and collateral requirements in practice.
How to apply
- The lender, not the borrower, submits the guarantee request to BFA, either through the online portal or by calling 603.415.0190.
- The BFA Board reviews and approves the request.
- The request is then forwarded to the Governor and Executive Council for final approval.
- The lender and borrower may need to attend the Executive Council meeting where the request is considered.
Frequently asked
Is there an application fee?
No application fee is charged.
Can a startup get a BFA loan guarantee?
Technically yes, but startups typically fail to meet the credit and collateral requirements in practice.
Are nonprofits eligible?
Yes, if they meet the other requirements.
How much does the guarantee cost?
A fee equal to 1% of the guaranteed portion of the loan, charged at closing and annually thereafter.
Who approves the guarantee?
The BFA Board reviews it first, then it goes to the Governor and Executive Council for final approval; the lender and borrower may need to attend that Executive Council meeting.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.