The SEKRPC has a revolving loan fund for private enterprises, public and non-profit small businesses located within the 12 county region in which we serve. A loan turndown letter from an area lender is required for all RLF loans. The application process will include the presentation of a business plan, the complexity of the business plan will be based on the project. The funding must support the creation or retention of jobs within the region. Financing is available for most business needs however, restructuring of existing debt is generally not eligible and must be approved by the Economic Development Administration (EDA). If the project involves construction, Davis-Bacon wage rates must be approved by the EDA. Project funding can be coupled with other loan programs or lending sources. A single project has a maximum funding amount of $100,000.00, the funding from the SEKRPC pool is limited. RLF loans will have a fixed interest rate of 4% below prime, with a minimum of 4%. Applications for RLF funding must be submitted with a $500.00 application fee to cover the miscellaneous fees incurred in the process of approval and closing. Repayment of RLF funds will be based on the cash flow of the business. Funds borrowed to purchase land or buildings will be placed on a repayment plan for up 15 years, purchase of machinery or equipment will placed on repayment plans ranging from 7-10 years, and inventory and working capital loans will be placed on repayment plans for 5-7 years. RLF loans will be secured by the best collateral position available and can be subordinated. personal guarantees of the owner(s) of the business are required. Please note that SEKRPC's overall RLF portfolio must maintain a 2:1 ratio, private to RLF funds. Contact the SEKRPC for more information or a loan application for the SEKRPC RLF funds.
Please submit applications to director@sekrpc.org.
