Connective Corridor Hospitality Enterprise Fund (CCHEF)
What Is It?
The Connective Corridor Hospitality Enterprise Fund (CCHEF) has been established to stimulate the development of new and existing restaurants and retail enterprises in downtown Syracuse. This fund is designed to provide financing to eligible enterprises as an alternative or enhancement to conventional bank financing.
CCHEF is managed by GSBDC with the Small Business Development Center (SBDC) at Onondaga Community College as a business development partner.
Funds may be used for the purchase and renovation of buildings, leasehold improvements, equipment purchases, or working capital.
New and existing hospitality enterprises including for-profit retailers and restaurants are eligible. Enterprises must be currently located or plan to locate within downtown Syracuse. Preference will be given to regionally recognized retailers and restaurants that offer a unique experience and/or product. Additional consideration will be given to enterprises that are part of mixed-use development projects.
Downtown Syracuse is defined as the district bordered by I-81 to the East, West Street to the West, Adams Street to the South, and I-690 to the North.
When participating with another lender(s), the lien position will usually be co-equal or subordinate. In addition, GSBDC may seek appropriate corporate and/or personal collateral.
GSBDC recognizes the high-risk profile of many hospitality enterprises, and due to this risk, GSBDC may require applicants to work with the SBDC before they are eligible for assistance. An equity injection/down payment equal to 10-20% of the total project cost will be required from the applicant.
Loans may be undersecured or unsecured. Personal guaranties will be required. The maximum GSBDC loan will be $75,000.
Typical amortization/term will be 3-5 years dependent upon the use of proceeds.
Generally structured with an interest only period, followed by equal principal and interest payments for the remainder of the term. The interest rate will be fixed at closing.
An application fee of $250 is required and reimbursement of GSBDC legal fees.
GSBDC reserves the right to alter these terms depending on project needs and qualifications.
- Business contacts GSBDC to outline project/financing need and determine eligibility.
- GSBDC provides access to an online workspace for completion of the loan application and other required information. GSBDC staff will determine if business is required to visit/work with the SBDC.
- If applicable, business completes work with SBDC and submits complete application through GSBDC's website with all required schedules.
- The GSBDC Loan Committee reviews with principals present. If satisfactory, the Loan Committee recommends approval to the GSBDC Board within days. Upon receipt of necessary documentation, a closing will take place.