CREC Revolving Loan Fund
Guidelines:
Eligible Activities: Working capital, land, building and equipment for rural organizations located in rural areas. All job-creating projects will be considered.
Preferred Projects: A preference will be given to manufacturing or other primary industries that bring money into the CREC rural area. The project should produce goods and/or services that are not only marketed within the CREC area, but also outside a 100-mile radius.
Equity Requirements: In most instances, the RLF will provide no more than 80 percent of a project’s total eligible costs.
Loan Amounts: The maximum loan amount will be established on a case-by-case basis. The minimum loan size is $10,000. No grants are given.
Collateral and Lien Position: Security of at least 100 percent of the loan value is required. A first lien position on fixed assets is preferred.
Rates and Terms: The maximum term is 10 years. Loan payment deferrals will not be granted. No balloon payments will be allowed per RBS guidelines. Interest rates will be fixed and the rate will be established at 1.5 percent below New York Prime as published in the Wall Street Journal.
Job Creation Requirements: Although job creation is a prime objective of the RLF, no job creation requirements are imposed. This will allow CREC more flexibility in making its lending decisions based upon all credit factors and business information. However, as a general rule, new jobs created should be no less than five with the potential for more. |