Areas Served: Humboldt County
The Revolving Loan Fund (RLF) of the Headwaters Fund seeks to provide gap financing (i.e., financing for projects that are not commercially bankable) to support job creation and retention, as well as positive business development in Humboldt County.
Revolving Loan Fund Mission and Goals – To increase availability of adequate and affordable credit to businesses and non-profits for the purpose of creating and/or retaining jobs in the community.
– To maximize the participation of local commercial banks and other private sector lenders and investors by engaging in private-public partnerships and gap financing.
Eligibility Humboldt County businesses and non-profits in any industry or field are eligible for loans.
Ineligible organizations include speculative organizations (firms deriving profit from fluctuations in price rather than through the normal course of trade), lending organizations (i.e. banks), political lobbying organizations, pyramid sales organizations, and organizations involved in illegal activities.
Headwaters Funds loan guidelines follow the existing loan guidelines offered by the above economic development lenders.
Please contact the above lenders for loan guidelines.
Typical loans have interest rates from 9-11% (to compensate for additional risk) and require sufficient collateral and projected cash flows.
Loan sizes range from $50,000 to $800,000 and up to $1,600,000 in special cases.
Headwaters Funds are used for 50% of the loan and are matched by other sources provided by the lender.
To be eligible for a loan through the above lenders you must have been denied by a commercial bank.
Eligible Uses of Loan Proceeds – Real estate purchase, construction and rehabilitation – Working capital – Equipment and machinery – Inventory – Leases – Product development Social Criteria for Loans – Projects must lead to job creation or retention.
Projects must meet or exceed the job-to-loan ratio of 1 full time job created or retained for every $35,000 loaned.
Exceptions to this requirement are possible if the project can demonstrate a sufficiently high economic value to the County.
– Projects must fit with the broad vision outlined in the County’s Comprehensive Economic Development Strategy.
Namely, projects must create or retain jobs, contribute to the economic vitality of the region and enhance the productivity of industry clusters or supporting industries.
Contact InformationHeadwaters Fund
Address: 100 Ericson Court, Suite 100A
City: Arcata
State: California
Website:
http://www.theheadwatersfund.org/revolving-loan-fund
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