Jefferson County, Alabama

Economic Development Administration (EDA) RLF Program

 

Economic Development Administration (EDA) RLF Program

Mr. Nathan Salter, Grant Administrator
Suite A-430
716 Richard Arrington Jr., Blvd North
Birmingham, AL 35203
Phone: (205) 521-7569
Fax: (205) 325-5095

The Jefferson County Commission Revolving Loan Fund Programs (RLF) mission is to help businesses develop, so that they can create or retain jobs that will benefit low to moderate-income persons. The program provides technical and financial assistance to entrepreneurs that commit to the creation or retention of jobs.

General Loan Recipients

Generally, any for-profit corporation, non-profit, partnership or sole proprietorship is eligible.

Criteria
  • Complete an application and provide all supporting documents
  • Loan must be fully secured
  • Must create or retain jobs to benefit low to moderate income persons (required in the case of RLF; desirable in all others)
  • Ten percent (10%) owners equity Revolving loan funds cannot be used for bankruptcy or refinancing
Fees:
  • $250 Non Refundable Application fee
  • There is a closing fee of 2% to be paid to the Jefferson County EDA RLF

Eligible Uses:

To financially assist entrepreneurs to obtain financing of various operational necessities. Funds may be used for, but not limited to, the following:

  • Business Expansion
  • Purchase machinery and equipment
  • Purchase inventory
  • Purchase furniture and fixtures
  • Leasehold improvements
  • Land and building acquisition
  • Working Capital

CDBG Revolving Loan Fund

The Community Development Block Grant Revolving Loan Fund (CDBG/RLF) can provide the borrower up to 50% of the total amount of the project cost.

General Guidelines:
  • One new job must be created or retained
  • Minimum loan of $35,000
  • Maximum loan amount is $350,000
  • RLF funding requires $2 in private financing for every $1 in RLF financing and cost a maximum of $350,000
  • Minimum interest rate of 4%
  • Loans are to be secured by lien positions on collateral Proof that other financing has been secured Loan may be fixed, variable or adjustable
  • All loans will be determined by credit worthiness, collateral coverage, and term of loan
  • The CDBG loan program requires that 51% of the jobs created or retained be created for low-to moderate income persons

EDA Revolving Loan Fund

The Economic Development administration Revolving Loan Fund (EDA/RLF) can provide the borrower with up to 33% of the total amount of the project cost. General Guidelines:

  • One new job must be created or retained per $35,000 loaned
  • Minimum loan of $35,000
  • Maximum loan amount is $350,000
  • RLF funding is not to exceed 33% of the total loan and cost of a maximum of $350,000
  • Minimum interest rate of 4% Loans are to be secured by lien positions on collateral
  • Proof that other financing has been secured
  • Loan may be fixed, variable or adjustable
  • All loans will be determined by credit worthiness, collateral coverage, and term of loan
  • Prospective borrowers will need to provide financial statements for the last 3 years of operation.