Areas Served: CHAUTAUQUA, COWLEY, ELK, GREENWOOD, HARPER, HARVEY, KINGMAN, MCPHERSON, MARION, RENO, RICE, SEDGWICK, SUMNER, BUTLER
The Revolving Loan Fund (RLF) is the oldest loan fund South Central Kansas Economic Development District, Inc. (SCKEDD) manages.
This program is a locally administered program of the U.S. Economic Development Administration.
Eligibility Your business might be eligible for a revolving loan if:
¢For private enterprises, public and non-profit small business must be located in the 14 county service area.
¢Must present loan turndown letters from area lenders.
¢Must present a business plan.
The quality of plan is tied to the complexity of the project.
¢Jobs must be created or retained by the project.
Projects Financed Characteristics of projects financed typically include:
¢Financing is available for most business needs; however, restructuring of existing debt is generally not eligible and must be approved by EDA.
¢If the project involves construction, Davis-Bacon wage rates must be paid.
¢Project can be coupled with other internal SCKEDD loan funds, as well as other lending sources.
Loan Amount
¢RLF Loans up to $300,000 from an internal revolving loan fund pool.
¢Pool of funds is limited.
Interest Rate/Fees
¢Private Enterprises Fixed interest rate ranging from Prime + 1.5% to Prime + 4.25%, Minimum of 9%.
¢Public and Non-Profits Fixed interest rate ranging from Prime + 1 % to Prime + 4.25%, Minimum of 9%.
¢Origination fee of 1% of loan amount.
¢Miscellaneous fees incurred in the process of approval and closing (i.e. credit bureaus inquiries, mortgage filings, U.C.C.
searches and filings, appraisals, title work, etc.)
Repayment
¢Principal and interest payment schedule based on the cash flow of the business and use of proceeds.
¢Land and Building = 15 years.
¢Machinery and Equipment = 7-10 years.
¢Inventory and Working Capital = 5-7 years.
¢Principal payments may be deferred if projections do not show the ability to pay principal right away.
¢Where necessary, interest may be capitalized for a period of time.
¢There is no penalty for prepayment of an RLF loan.
Collateral
¢RLF loans are 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 the overall portfolio must maintain a leverage ratio of 2:1, private to RLF funds.
Therefore some loans may be made without a private match, but these are held to a minimum.
Contact InformationSouth Central Kansas Economic Development District
Address: 200 W. Douglas, Suite 710
City: Wichita
State: Kansas
Website:
http://www.sckedd.org/
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