Economic Development Administration (EDA) RLF Program

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%) owner’s 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.