Revolving Loan Fund
Initially capitalized in 1995 the SRDC Revolving Loan fund has made 116 loans in
the region for a total of $6.1 million. As repayments are made to the pool they
are re-lent to businesses throughout the region. Businesses in Cottonwood, Jackson,
Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, and Rock counties are eligible
to apply.
Purpose The purpose of the SRDC Revolving Loan Fund (RLF) is to directly
loan funds to assist existing retail, service, manufacturing, and distribution businesses
with fixed asset and working capital financing.
Eligible Applicants The primary business sectors targeted for these loan
proceeds will be agribusiness, retail firms, and service sector. Manufacturing companies
will also be considered. Businesses must be located in Cottonwood, Jackson, Lincoln,
Lyon, Murray, Nobles, Pipestone, Redwood or Rock County. They must be a �for-profit�
business. Priority will be given to businesses in danger of closing, women owned
businesses or Veterans.
Minimum Requirements One job must be created or retained for every $20,000
of loan proceeds from the RLF.
Maximum Available Loans may range in size from $5,000 to $100,000 but must
be matched by private funding.
Other Funds Required Applicant must show that they cannot leverage affordable
financing from any other means. The RLF must be matched on a one-to-one basis by
a bank or other non-Federal source.
Interest Rates Interest rates will be 1% under NY Prime at the time of loan
approval, with a 5% floor.
Terms Loan repayment is typically 5 to 7 years, depending on the asset financed.
Collateral The RLF may subordinate to private bank financing. Personal guarantees
may be required.
Fees and other Costs A 1.5% Origination Fee for the Loan will be required.
Closing legal costs will be paid by applicant. There is a $150 application fee due
at the time the application is submitted.
Applications accepted on a year round basis. For more information on the SRDC Revolving
Loan Fund please contact Nan Larson at nanlarson@swrdc.org.