Chandler Collateral Assistance Program

The Chandler Collateral Assistance Program (CCAP) was created by the Chandler Industrial Development Authority (CIDA) to assist Chandler businesses in obtaining loans and creating jobs in Chandler. The Chandler Collateral Assistance Program provides additional collateral, of a maximum of $50,000 or 20 percent of the total loan proceeds, whichever is less, to eligible businesses.

CIDA extends Collateral Pledge from two years to a term of up to four years. With the Collateral Assistance Program, the successful applicant/borrower is able to receive a loan and the lender is in a more secure collateral position. Jobs creation is an essential element of any request for Collateral Assistance.

  • The Collateral Assistance Program is not a substitute for a conventional loan. Rather, it works in partnership with lenders to make credit more readily available to growing businesses.
  • The Collateral contribution encourages lender participation by providing additional collateral for loans that otherwise may not be approved.
  • The Collateral contributed by the CIDA is deposited with the lender who takes a security interest and can draw upon the collateral, but only after the borrower defaults and all required measures to collect the indebtedness are exhausted by the lender (including the conclusion of legal proceedings against the borrower and all other collateral).
  • While the Collateral is on deposit with the lender, all interest earned is for the benefit of the CIDA.
  • Under the Collateral Assistance Program, each borrower is expected to create at least one job in Chandler within two years of the loan closing.
  • The Collateral deposit is pledged for a maximum of four years in an amount up to $50,000 or 20 percent of the total loan proceeds, whichever is less. After four years, the CIDA withdraws the collateral."
  • $250 non-refundable application fee paid to CIDA for review of the loan application and related documents;
  • Closing fee equal to 1 percent of the total amount of the Collateral contributed by the CIDA;
  • Annual administration fee equal to 1 percent of the total amount of the Collateral contributed by the CIDA; and, potentially third party advisors to the CIDA, including reasonable legal and accounting fees (not expected in most cases).
  • Maximum amount of fees that could be paid for a collateral transaction for the maximum amount contributable by the CIDA would be $1,250 (excluding potential third party advisor).
  • Working Capital
  • Purchase or renovation of an existing facility
  • Acquisition of machinery and equipment
  • New construction
  • Leasehold improvements

Ineligible Activities:

  • Debt refinancing
  • Payment of delinquent taxes or judgments
  • Product development costs
  • Acquisition, rehabilitation or construction of residential real estate

Ineligible Businesses:

  • Gambling
  • Speculative ventures
  • Investment oriented activities
  • Illegal activities
  • Businesses substantially engaged in the sale of alcoholic beverages
  • Nonprofit or not-for-profit business entities
  • Other ineligible business activities as may be determined from time to time by the CIDA


CIDA Staff Liaison Economic Development CIDA Board
Dawn Lang
Management Services Director
Micah Miranda
Economic Development Director

Lee Kroll
CIDA President