Areas Served: City of Orem
The Revolving Loan Fund is a CEDO-administered program that provides financial assistance to new and expanding local businesses in Orem, Utah.
The purpose of the RLF is to stimulate private investment and create employment opportunities in Orem.
Funding for the RLF comes from the Department of Housing and Urban Development (HUD) and the Economic Development Administration (EDA).
CEDO’s Revolving Loan Fund is the oldest of its kind in the state of Utah.
Since the inception of the RLF in 1986, CEDO has provided loans to over 100 Orem businesses, with the total amount loaned recently surpassing $7 million.
Who can utilize the RLF? Consideration for the Revolving Loan Fund is given to all applicants who meet the following requirements: Your business must fall within the following two categories: An industrial/manufacturing, commercial, or service business An owner-user business or a for-profit company To comply with federal funding regulations and to achieve the purpose of the RLF, businesses must show they can meet these additional requirements: The business must provide at least two private sector dollars for every one RLF dollar.
The loan money must be used as a source of working capital or financing for the acquisition of machinery or equipment used at the Orem place of business.
The business must create one job for every $15,000-$20,000 borrowed.
Sixty percent of jobs created must pay at least minimum wage and be available to people with a low/moderate income.
*Loans will not be made to companies who are in direct competition locally for their main client bases.
Special Considerations Although all loans that meet the minimum requirements will be considered, preference will be given to applications who: Have demonstrated that funds are not available from other sources; Have shown they will exceed the minimum requirements of job creation while maintaining the ability to meet debt service; Have shown that RLF funds are fully secured.
(The greater the security of RLF funds, the higher priority given to the application); Create jobs in the basic sector, which will spinoff additional new jobs in the service and retail sector; Demonstrate public and/or community benefit.
What are the specifics of the loans- Maximum loan amount is $80,000; the minimum amount is $15,000. Interest rate is up to three points below the competitive interest rate (fixed over the loan term).
Typical interest rates have been between 8-12% Minimum leverage is 2:1(which means a minimum of two private sector dollars for every one RLF dollar loaned) Applications are accepted year-round and are due by the end of the month prior to the month in which applications will be considered by the RLF committee.
Contact InformationCommission for Economic Development in Orem
Address: 777 South State Street
City: Orem
State: Utah
Website:
http://www.cedo.org/nb_assistance.html
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