• Jan 21, 22
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

Initially capitalized in 1995 the SRDC Revolving Loan fund has made 116 loans in the region for a total of $6.1 million. As repayments are made to the pool they are re-lent to businesses throughout the region. Businesses in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, and Rock counties are eligible to apply. Purpose The purpose of the SRDC Revolving Loan Fund (RLF) is to directly loan funds to assist existing retail, service, manufacturing, and distribution businesses with fixed asset and working capital financing. Eligible Applicants The primary business sectors targeted for these loan proceeds will be agribusiness, retail firms, and service sector. Manufacturing companies will also be considered. Businesses must be located in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood or Rock County. They must be a for-profit business. Priority will be given to businesses in danger of closing, women owned businesses or Veterans. Minimum Requirements One job must be created or retained for every $20,000 of loan proceeds from the RLF. Maximum Available Loans may range in size from $5,000 to $100,000 but must be matched by private funding. Other Funds Required Applicant must show that they cannot leverage affordable financing from any other means. The RLF must be matched on a one-to-one basis by a bank or other non-Federal source. Interest Rates Interest rates will be 1% under NY Prime at the time of loan approval, with a 5% floor. Terms Loan repayment is typically 5 to 7 years, depending on the asset financed. Collateral The RLF may subordinate to private bank financing. Personal guarantees may be required. Fees and other Costs A 1.5% Origination Fee for the Loan will be required. Closing legal costs will be paid by applicant. There is a $150 application fee due at the time the application is submitted. Contact Information Southwest Regional Development Commission Address: 2401 Broadway Avenue, Suite 1 City: Slayton State: Minnesota Website: https://www.swrdc.org/