Richland Economic Development Corp (REDC) Revolving Loan Fund (RLF)

REDC partners with local banks to maximize financial leverage and minimize the risk

The Financing Program that works with you…...for you…….

To keep and create jobs, to expand and diversify our economy. The RLF program assists qualifying small businesses with low fixed interest rates and flexible payment options.  Gap financing is needed at times when a conventional bank lender cannot loan the full amount needed.  This can happen because of insufficient collateral, equity or marginal credit.  To secure the loan, the borrower must pledge available assets, including personal guarantees of the principals.

The RLF committee will use the following economic impact criteria to evaluate proposed loans:

1. Will it create or retain jobs?

2. Will it expand the economic base?

3. Will it promote public-private partnerships?

4. Will it add value to and expand the market for the area’s agriculture and natural resource products?

Loans for Startup or Expansion

Qualified applicants may borrow funds at  a low fixed interest rate.  The loan proceeds may be used for working capital and fixed assets.  Credit decisions are based on a business plan noting repayment ability, feasibility, as well as credit and management capability.  Because REDC works closely with each applicant, criteria such as collateral and credit history are evaluated on an individual basis.  The terms and conditions of each loan depends on the applicant’s needs, business plan and the useful life of  collateral.  Completed applications and business plans are submitted to the REDC Loan Review Committee for evaluation and decision.

Goals and Objectives:

      1.  Create additional job opportunities for the residents of Richland County.

      2.   Leverage other private and public funds for business development, when possible.

      3.   Provide opportunities for existing businesses.

 Type of Business/Activities Assisted

      A.   Priority for loan assistance will be given to projects that create basic employment, allow for new businesses to start up, and existing businesses that are expanding.

      B.   Consideration will be given to developing a balanced portfolio.

Individual projects must demonstrate that the borrower is using the maximum amount of private debt and equity financing available.

      The following scenarios are NOT ELIGIBLE for RLF assistance:

        Businesses that:

  • · Receive more that 25 percent of their gross sales from gaming,
  • · Use multi-level marketing strategies,
  • · Will house or solicit professional sports teams or events,
  • · Are privately owned recreational facilities,
  • · Are applying for production agriculture loans, 
  • · Are money services businesses 

Loan process:

Step 1:    The applicant will meet with his/her  loan officer and pick up an application.

Step 2:  The applicant will meet  with REDC personnel to gain an understanding of the project,  its parameters, the principals, and the potential structure of the deal.  During the initial interview, the applicant will be given specific information about the loan fund program and the application process.  The purpose of this step is to determine if the proposed project is feasible, and whether it meets the goals of the RLF Program.

Step 3:  Applicants who are determined eligible for the RLF assistance will be required to provide financial statements and other information necessary to complete the loan application.  The purpose of this step is to develop a proposed structure for the deal.

Step 4:  The completed loan application packages are then submitted to the RLF committee.  The committee may request more information, revise the proposed financing structure, and negotiate with the applicant regarding terms and conditions.

Step 5:   The RLF committee makes the decision regarding the possible funding of the proposed project.

Step 6:   The applicant is notified of the RLF committee’s decision.

 

REDC RLF Application