Revolving Loan Program
The Six County Association of Governments' offers revolving loans for local businesses.
The LAB consists of the Six County economic development directors/coordinators, the SCEDD Board Chair or appointed elected official, and an appointed individual from the finance/banking industry.
The program consists of three resource categories:
- The RLF provides “gap financing” in partnership with banks, borrower, and/or other financial resources. This is a long term finance program for new and expanding businesses with finance needs of $20,000 to $250,000. Job creation is a requirement for qualification. Funding resources include EDA, Community Development Block Grant allocations, and a grant from U.S. Rural Development Administration (USRDA).
- The Intermediary Relending Program (IRP) provides funds for loan end users from a USDA loan to the SCEDD. Use of funds can be either “gap financing” or up to 75%/25% lender/borrower loan. Other requirements are similar to the RLF.
- The Targeted Business Assistance Fund (TBAF) is a micro-loan program created for the purpose of encouraging start-up and expanding businesses to target vacant buildings and sites throughout the Six County Region. These loans are 60 months or less term with a maximum loan amount of $10,000. Funding resources were from a congressional funding to the State for economic development projects.
The loan programs are revolving in that repayments are utilized for future loans.
Staff involved in the program work in coordination with the county economic directors/coordinators to meet potential client needs, assisting clients in application completion, identifying additional funding and assuring that program guidelines are met. They are also responsible for organizing meetings, taking minutes, program reports, training, loan monitoring, audit participation, correspondence and liaison with partner agencies.
For more information, contact our RLF staff lead, JaLyne Ogden at 435-893-0747.