Revolving Loan Fund
City of Anderson has established a Revolving Loan Fund (RLF) program that operates through the Department of Community Services and Economic Development. The major goal of the RLF is to create new permanent jobs or retain existing jobs for Anderson.
Eligible applicants and projects:
Generally, any small business is eligible if they meet the definition of SBA size criteria. Exceptions are retail/commercial businesses in well developed areas, real estate development companies or construction firms. In addition, the applicant must be within the Anderson city limits or commit to locate within the city limits sixty days after the loan closing.
These are just a few examples of how the RLF can be used:
- Site Acquisition or working capital
- Plant acquisition or construction or property rehabilitation
- Equipment purchases or leases, as well as, inventory acquisition
Following a loan selection criteria, the RLF is structured as a tandem loan program that works in cooperation with the major banks in Anderson. Any loan request must have the support of at least one participating bank that will supply a minimum percent of the total loan request, negotiated under their normal loan conditions and criteria. If the bank determines it can make the loan with RLF assistance, then the bank will submit a request to the Anderson Economic Development Revolving Loan Fund Board.
The RLF program is designed such that up to 33% of the total project is lent through the RLF and at least 67% is lent by a private lender. In addition, the borrower may be required to make an equity injection of 10% of the total project cost.
The private lender’s portion of the project will be an interest rate as negotiated between the lender and the borrower. The RLF’s portion of the loan will be flexible in terms of interest rates, but in no case will the rate be lower than four percentage points below the U.S. Treasury rate.
For any additional information about this program contact Linda Dawson, Economic Development Department at (765) 648-6112.