1. #1
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    Default Fire Department Loans

    Anyone know a good company to go through for Fire Department Loans? We got turned down because we are 100% volunteer and the bank considers that a liability which I don't understand because we paid our last loan off 5 years a head of time. Any information would be helpful.


    Thanks,

    J. Medlin
    Assistant Chief
    Patterson Heights VFD

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    what about the USDA. they are always giving out loans to fire depts. with little interest.

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    Think that was just an excuse. Most banks look at FDs like businesses so they look at guaranteed income (tax funding) & assets versus liabilities. If a lot of the income you have is fundraising then that's a shaky leg to be standing on in a downturn economy. USDA is probably the best option if you qualify.

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    Used to work for a major bank, still have friends there,

    The word has come down on a lot of loan officers, lending is drying up. The banks really don't have the reserves to make a lot of loans because they made so many bad ones in the last ten years.

    This isn't all banks, but it is some of them.

    Try a small local bank or credit union that didn't get involved in sub-prime lending.

    /watching my bank stock price falling through the floor
    //sigh

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    Last edited by kuntrykid; 09-10-2008 at 11:41 PM. Reason: Don't want to be a member of these forums, so I deleted my posts.
    My comments do NOT necessarily reflect the opinions of my department, my fellow volunteers, or anyone else with whom I am associated.

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    Small local banks are normally more than willing to work with fire departments. Not sure how much you are asking for, but I often see
    20-50K loans made to VFD's for no interest.

    With that said, don't expect that kind of deal from your mega banks.

    It also helps tremendously if you bank locally, and not with a megabank.

    I know of one department down here that used the local bank, but never
    even got a $20.00 donation from the bank or its president/owner. The guy
    passed away, and left them nearly 3 million. They upgraded their department, left nearly a million in investments, whch provides them their operating budget. (I know, to you rich departments it does not seem like a lot, but down here most of these departments have under 10k a year budget, they would kill to have that 45K or s that this department gets)

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    Send me an E-mail and I will send to you an individual in MS the deals with Fire Department for loans.dtaa665199@aol.com
    We got a loan on a new pumper when we got a DJ a couple of years ago. They were good people to work with

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    Try this guy, I know he has helped some departments in MS also and the South. MAy be the same guy you were tlaking about guy:

    dcgreer@govcap.com
    Kurt Bradley
    Fire/EMS/EMA Grant Consultant
    " Never Trade Skill for Luck"

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    Banks have to make x% of their loans locally. You want an "Essential Community Service" loan. Take a letter from your FD/city lawyer that loan is to the XYZ FD for _____________ and eligible as a "Essential Community Service" loan. Rate should be about a point lower than rate otherwise pervailing as the income the bank recieves is not taxable. Bring cashflow information showing track record over last 3-5years. The bank's primary interest is knowing the loan will be repaid. No bank wants to be in the position of repoing your fire truck. If you operate on tax $ your loan is much lower risk to the bank than any other loan they will make.

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    Check with your local state rep as there may be loan program available to you as well.

    Not to mention RFA loan, USDA program....just a few

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    If you are in PA the state has a 2% loan available for fire departments. Lots of paperwork but cheap money.

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    AF2181 is right.. USDA has a very active Rural Development Loan and Grant program.
    Grants are small and rare, but loans are fairly common, and at least in Florida, the local reps are very helpful.
    If you qualify as rural, it is well worth the effort.

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    Check out First Responders Financial, they do apparatus loans. Just recieved an email through firehouse.com about this company.

    http://www.firstresponders.com/products/apparatus/

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    Sometimes you luck out and get a grant. They covered a very large portion of our mini-pumper. Worth the time it takes, not a lot of paperwork, and well worth the effort.

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    Smile

    I believe you're located in Beaver Co. Pa (I'm in Hanover, Station 68) and the earlier post by Chip is right on. The 2% loan is the way to go. Like they say, fair bit of paperwork, but for 2%... it's worth it!

    There's info about it on the Office of State Fire Commish web site and I copied the web address down here, though I'm sure you can navigate to it just as easily.

    http://www.osfc.state.pa.us/osfc/cwp/view.asp?a=3&Q=244793&osfcNav=|

    Good luck!

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