Areas Served: White Pine, Nye, Mineral, Esmeralda, Washoe, Storey, Lyon, Douglas, Churchill, Carson, Elko, Humboldt, Lander, Pershing, Clark, Eureka and Lincoln Counties.
The Rural Nevada Development Corporation (RNDC) is a non-profit development corporation formed in January of 1992 to serve the fifteen counties of Rural Nevada as well as the rural portions of Clark and Washoe Counties and the twenty-seven Indian Tribes of Nevada.
Formation RNDC was formed as a response to a need identified for specialized development services, which could be effectively provided by a non-profit development corporation, which could access federal and state funds for economic development for the targeted service areas.
Business Lending RNDC has established significant loan capital, which it lend to small businesses in need of expansion or start-up financing in the target areas mentioned above.
RNDC has obtained over $5.6 million by various funding sources such as USDA-Rural Development, The Economic Development Administration, Charles Schwab Bank, Nevada State Bank, and RNDC funds as well.
The Board of Directors has targeted the use of the funds for businesses in need of expansion financing, fixed assets, purchases, working capital, and start-up businesses in cities with a population of 25,000 or less.
The RNDC loan funds significantly address the capital gap for rural businesses, and leverage bank participation in rural business loans.
RNDC works closely with the Nevada Commission on Economic Development and the Nevada Small Business Development Center.
Financing Policies – The minimum size of any loan is $5,000 and the maximum is $150,000. – Fixed Rate Interest – Longer Terms – Flexibility in collateral requirements and taking a subordinated position on collateral with Nevada banks.
Rate Interest rates to be charged will range from 6% to prime plus 5%.
Term The maximum term for a fixed asset loan is 25 years.
Working capital term is for 3 years, however, may be lengthened pending approval for permanent working capital needs.
Owner’s Equity Injections A minimum of 8% of the project cost should be injected by the business.
Equity injections can be cash, inventory or real estate for new construction projects.
However, the USDA IRP Program can finance only 75% of any project.
Loan Fees Loan packaging fees 2% of loan amount with a $100.00 non-refundable fee upon application submission, however this amount will be applied to the total 2% fee if the loan is approved.
Contact InformationRural Nevada Development Corporation
Address: 1320 East Aultma
City: Ely
State: Nevada
Website:
http://www.rndcnv.org
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