Areas Served: Pulaski, Faulkner, Saline, Lonoke, Prairie, Monroe
The Revolving Loan Fund of the Central Arkansas Planning and Development District was created through a grant from the U.S. Department of Commerce Economic Development Administration for the purpose of assisting the economic development of Pulaski, Faulkner, Saline, Lonoke, Prairie, and Monroe counties in Central Arkansas.
Because of the nature of federal funding, there are certain requirements that must be met to secure loan funding under this program.
The following briefly sets forth those requirements: Job Creation Because the purpose of the Revolving Loan Program is to provide economic stimulus in Central Arkansas, the proposed project must create or retain jobs that would otherwise have been eliminated.
In general, one job must be created for every $10,000 of funding from the Revolving Loan Fund (RLF).
Such creation usually takes the form of a new job.
However, under certain circumstances, the retention of an existing job may qualify for this requirement.
Capital Formation The Revolving Loan Fund is designed to be a financing source which fills the gap in financing that is not available in existing local financial markets.
As gap financing, the fund is designed to attract capital investment from the private sector.
Under this program, it is preferred that loans contain a minimum of fifty (50) percent participation from local financial institutions of other investors.
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 to one dollar from the Fund.
The standard equity requirement of the RLF will be ten (10) percent.
The RLF Board may choose to consider projects with less than ten percent equity injection if the economic impact of the project warrants the exception.
The equity requirement shall be the same for start-up and existing business, as well as fixed asset and working capital loans.
Types of Activities The Fund is designed to assist small business development, including expansion and start-up of locally owned businesses.
Such loans may be used to finance the acquisition of real estate, buildings, equipment, inventory, accounts receivable or working capital.
Special emphasis will be placed on those activities which create the highest value added to the economy.
Those projects which expand industrial or manufacturing capacity encourage the formation of new technologies, growth industries and/or high technology firms will receive higher ranking for the limited RLF funds.
In addition, emphasis will be placed on the development of businesses owned and operated by minorities, women and members of other economically disadvantaged groups.
A borrower is eligible for RLF financing only when credit is not otherwise available on terms and conditions which would permit completion and/or the successful operation or accomplishment of the project activities to be financed.
Prohibitions
Contact InformationAddress: 902 N Center
City: Lonoke
State: Arkansas
Website:
http://www.capdd.org
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