Community Adjustment and Investment Program « Back to Search Results
Community Adjustment and Investment Program

Category: State Incentives, Grants & Loans

AGENCY: North American Development Bank (NADBank).
DESCRIPTION: The Community Adjustment and Investment Program was created in connection with the passage of the North American Free Trade Agreement (NAFTA) to provide credit to new or expanding businesses in communities with significant job losses due to changes in trade patterns with Canada and Mexico. The program will combine the efforts of NADBank, federal agencies, local financial institutions and financing intermediaries.
• Assists where shortfalls exist in capital availability in commercial lending markets for start-up or expansion efforts within communities that have experienced significant job losses.
• Available for commercial projects that create new private sector jobs.
• There is a partial county eligibility option for counties in which only a part is experiencing negative effects of NAFTA.
• Maximum Program Benefits: NADBank financing is limited to loans, guarantees and loss reserve funds. Borrowers must provide evidence that the desired credit is unavailable from other sources.
• There is also money set aside for a grant program.
• As of December 19, 2005, the allowable cost per job created is $50,000.
• Equity: At least 50% from other sources.
• Maturities, Rates, and Fees: Reasonable; based on the source of financing. QUALIFICATION CRITERIA/COMMENTS:
• Applicants must provide information that demonstrates significant economic impact within the community:
• Evidence of significant job losses associated with the passage of NAFTA. This means 300 or more NAFTA related job losses for a rural area and 500 or more for an urban area; and
• Evidence that the community has not adjusted to the job losses through the existence of other employment opportunities.
• For more information, visit
• Also, visit for an exhaustive list of all the programs NADBank has to offer.

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