Download Application HERE

Revolving Loan Fund

PURPOSE

The purpose of the RLF is to provide gap financing to small businesses in situations where the bank is unable to fill total capital needs because of lending limits, collateral requirements, or risks associated with lending in rural areas.

The program targets manufacturing businesses that will create new jobs in Box Elder, Cache,  or Rich Counties as part of the region's overall economic development efforts.

APPLICATION DEADLINES

• None

ELIGIBLE BORROWERS

• Business with less than 500 employees
• For profit and non-profit businesses

ELIGIBLE PROJECTS

• Fixed assets, including land and building
• Construction and renovation
• Machinery and equipment
• Leasehold improvements
• Working capital where:  1) working capital is fully collateralized, 2) a private lending institution is providing a portion of the financing and 3) new jobs result

LEVERAGE REQUIREMENTS

• Maximum participation by RLF in fixed assets acquisition will normally be 40%
• Working capital loans may be made for up to 100% of the need, depending on the gap left unfilled by private lenders
• Minimum owner equity should equal 10%

RATE OF LOAN

• Dependent upon borrowers ability to repay. Typically the rate is fixed at two points above the prime lending rate at the time of loan closing.

TERM OF LOAN

• Fixed assets: 5-25 years based on life of asset
• Working capital: 1-7 years based on the use of funds and the ability to repay
• Typically, the loan will be called within10 years

COLLATERAL

• RLF must take collateral position in assets pledged or assets purchased
• RLF may take a subordinated mortgage position to other lenders

LIMITS ON AMOUNT OF LOAN

• Maximum loan is $100,000
• Minimum $10,000

JOB CREATION

• Emphasis on job-creating projects
• At least one job must be created for every $15,000 of RLF
• 51% of jobs should be filled by persons who have low or moderate family incomes

FEES

• Applicant will pay 1.5% loan origination fee
• Applicant is responsible for other administrative costs associated with the loan, such as the cost of recording documents, title insurance costs, appraisals, etc..

CHECKLIST

Items to be submitted by applicant

A completed application and Business Plan with the following documentation.

• 1. Description of the Project to be financed (with source and use statement)
• 2. Benefits of Proposed Project to the Business
• 3. History of Business
• 4. Lender Commitment Letters
• 5. Owners/Manager's Resumes
• 6. Historical Financial Statements (3 years)
• 7. Current Financial Statements
• 8. Cash Flow Projections
• 9. Projected Profit and Loss (3 years)
• 10. Proforma Balance Sheet (for start-up)
• 11. Personal Financial Statement of Owners
• 12. Schedule of Existing Debt
• 13. Construction Cost Estimates
• 14. Vendor Quotes on Machinery and Equipment or Furnishings and Fixtures
• 15. Appraisal(s)
• 16. Real Estate Purchase Agreement if applicable
• 17. Job Creation by Year and Skill

                                   Download Application HERE