Areas Served: Baxter, Benton, Boone, Carroll, Madison, Marion, Newton, Searcy, Washington
The Revolving Loan Fund (RLF) of the Northwest Arkansas Economic Development District was initially created through a grant from the United States Department of Commerce, Economic Development Administration (EDA) for the purpose of assisting in the economic development of the nine counties of the Northwest Arkansas District, including Baxter, Benton, Boone, Carroll, Madison, Marion, Newton, Searcy and Washington.
Because of the nature of federal funding, there are particular requirements that must be met to secure loan funding under this program.
The following are brief descriptions of some of these requirements.
Jobs Creation – One job must be created for each ten thousand dollars ($10,000) of loan funding from the Revolving Loan Fund.
Although the general requirement is that this must be a newly created job, under some circumstances the retention of an existing job may qualify.
Capital Formation – The Revolving Loan Fund is designed to be a source of financing which fills the gap in project financing that is not available from existing, local financial funding sources.
The fund is also designed to provide gap financing which attracts and leverages capital investment participation from local financial institutions and other investors, at a minimum level of 50 percent.
Current regulation allows the private sector participation to take the form of Act 9 Industrial Revenue Bonds.
Sufficient equity is also recommended to provide a minimum of two private dollars for each one dollar provided through RLF financing.
Types of Activities – The Revolving Loan Fund is designed to assist small business development, including expansions and start-ups of locally owned businesses.
RLF Loans may be used to finance the acquisition of real estate, buildings, equipment, inventory, accounts receivable, or working capital.
Special emphasis is placed on those projects and activities which create the highest value added to the economy.
Typically, those projects which focus on expanding industrial or manufacturing capacity, encourage the formation of new technologies, growth industries and/or high technology firms will receive higher ranking for the limited available RLF funds.
Additionally, emphasis is placed on the development of businesses owned and operated by minorities, women, and members of economically disadvantaged groups.
A potential borrower is eligible for RLF assistance only when credit is not otherwise available under terms and conditions which would permit the successful completion, operation, and/or accomplishment of the project activities.
Prohibitions – By law, the Revolving Loan Fund is specifically precluded from providing assistance which would relocate jobs from one labor area to another.
The Fund may not make loans which would potentially create any conflicts of interest between the potential borrower and the lender.
Contact InformationNorthwest Arkansas Economic Development District
Address: NWAEDD Plaza 818 Highway 62-65-412 North
City: Harrison
State: Arkansas
Website:
http://www.nwaedd.org/RLF.htm
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