The primary goal of the EDA Title IX Revolving Loan Fund (RLF) is to create or save jobs by making capital available for fixed and/or operating expenses. These proceeds can be used for land and building acquisitions, site improvements, machinery/equipment and operating capital. The objective of the loan program is to create new permanent full-time job opportunities, provide sufficient capital for high risk ventures, make the availability of assistance to minority and disadvantaged business owners, and continue the diversification for the business and industry sectors in the 15 county area.
To participate in this program, the business owner(s) must be U.S. citizens. The business must be a For-Profit entity, and job creation, other than the owner(s), must result from the business start-up or expansion. One job must be created for each $10,000 loaned.
Criteria:
Borrower must inject a minimum of 10%of the total project cost as equity. EDA RLF can finance up to 33% of the total project cost, not to exceed $200,000. A bank or other lending institution must loan the remaining balance of the project. Documentation in the form of two denial letters from two seperate lending institutions must be submitted to show that the borrower is unable to obtain the financing required. The total project must be at least $30,000.
Eligible Area:
The business must be located within SMPDD's 15 county area.
Fees:
Applicant is responsible for a $150 non-refundable application fee, 1% origination fee, and attorney fee to close the loan.
Loan Terms:
Real estate, no more than 15 years; fixed assets, no more than 10 years; working capital, no more than seven years. Loan term is dependent upon assets financed.
Eligible Project Costs:
Land acquisition and site preparation; building construction, rehabilitation, or acquisition; machinery and equipment; marketing, promotion, and other working capital needs.
Ineligible Project Costs:
Investment financing, i.e. apartments, rental properties, trailer parks, etc.; Media Types, i.e. radio stations, newspapers, magazines,etc.
