• Oct 13, 21
• spencergregory
• Revolving Loan Fund Directory
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The Kenai Peninsula Economic Development District’s Revolving Loan Fund (RLF) provides alternative financing options to small businesses in Alaska.

Financing is available to support the startup and expansion of businesses within the borough which create long-term employment and diversify the economy.

The types of businesses targeted by the RLF include:

– Projects that encourage growth and diversification of employment and investment; – Projects emphasizing job retention or creation; – Projects adding value to existing businesses and industries; – Projects providing a product, business, or service which is not now available or which is currently imported into the area; – Projects utilizing existing vacant industrial or commercial buildings; – Projects supporting minority or women in business development opportunities; or – Projects responding to international demand for local products, services, and attractions (i.e., marine resources, timber products, and tourism).



The following type of activities are eligible:

– Fixed asset and equipment loans to new or expanding businesses; – Working capital; or – Remodeling of existing vacant buildings for owner occupancy.



ELIGIBILITY

Projects that are financed with RLF proceeds must be located within the Kenai Peninsula Borough and stay within the Borough until paid off.

Applicants basically have no other alternatives for financing sources.

For example, applicants have applied with their bank, and the bank has denied the request to finance the total requeSt. Therefore, we provide gap financing.

That is, we finance a portion and participate with banks and other lending institutions.

KPEDD typically finances one third of the total amount required.

Companies should meet the criteria of “small business” as established by the U.S. Small Business Administration.

The following types of project costs will be considered: – Acquisition and assembly of land; – Development of real estate; – Investments which will accelerate recycling of land and facilities; – Land costs; – Building costs; – Machinery and equipment costs; – Working and start-up capital; – Infrastructure costs; or – Relocation costs.



As a general rule, loan funds may not be used to finance costs incurred prior to approval of an application; nor, to refinance loans made by other lenders, except interim construction loans.

To insure that loan funds do not substitute for available private capital, applicants must supply either:

1) turndown letters from other lenders listing the terms and reasons for denial; or,

2) a list of lenders that were contacted, the amount of financing requested, and the reasons for denial.

Applicants will be required to substantiate these items when in question.

INTEREST RATE The interest rate will be determined by the Loan Review Committee.

It will be a fixed interest rate comparable to rates given for loans of similar size, maturity, and purpose in the project area.





Contact Information
Kenai Peninsula Economic Development District
Address: 14896 Kenai Spur Hwy, Suite 103 A
City: Kenai
State: Alaska

Website: http://www.kpedd.org/index.php?page=revolving-loan-fund

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