Jefferson County, Alabama

EDA/CDBG Revolving Loan Fund (RLF) Program

 

EDA/CDBG Revolving Loan Fund (RLF) Program

Joseph Dees

ECONOMIC DEVELOPMENT ANALYST

The Jefferson County Commission Revolving Loan Fund Program’s (RLF) mission is to help businesses develop, so that they can create or retain jobs that will benefit low to moderate-income persons. The program provides technical and financial assistance to entrepreneurs that commit to the creation or retention of jobs.

General Loan Recipients

Generally, any for-profit corporation, non-profit, partnership or sole proprietorship is eligible.

Criteria
  • Complete an application and provide all supporting documents
  • Loan must be fully secured
  • Must create or retain jobs to benefit low to moderate income persons (required in the case of RLF; desirable in all others)
  • Ten percent (10%) owner’s equity Revolving loan funds cannot be used for bankruptcy or refinancing
Fees:
  • $250 Non Refundable Application fee
  • There is a closing fee of 2% to be paid to the Jefferson County EDA RLF

Eligible Uses:

To financially assist entrepreneurs to obtain financing of various operational necessities. Funds may be used for, but not limited to, the following:

  • Business Expansion
  • Purchase machinery and equipment
  • Purchase inventory
  • Purchase furniture and fixtures
  • Leasehold improvements
  • Land and building acquisition
  • Working Capital

CDBG Revolving Loan Fund

The Community Development Block Grant Revolving Loan Fund (CDBG/RLF) can provide the borrower up to 50% of the total amount of the project cost.

General Guidelines:
  • One new job must be created or retained
  • Minimum loan of $35,000
  • Maximum loan amount is $350,000
  • RLF funding requires $2 in private financing for every $1 in RLF financing and cost a maximum of $350,000
  • Minimum interest rate of 4%
  • Loans are to be secured by lien positions on collateral Proof that other financing has been secured Loan may be fixed, variable or adjustable
  • All loans will be determined by credit worthiness, collateral coverage, and term of loan
  • The CDBG loan program requires that 51% of the jobs created or retained be created for low-to moderate income persons

EDA Revolving Loan Fund

The Economic Development administration Revolving Loan Fund (EDA/RLF) can provide the borrower with up to 33% of the total amount of the project cost. General Guidelines:

  • One new job must be created or retained per $35,000 loaned
  • Minimum loan of $35,000
  • Maximum loan amount is $350,000
  • RLF funding is not to exceed 33% of the total loan and cost of a maximum of $350,000
  • Minimum interest rate of 4% Loans are to be secured by lien positions on collateral
  • Proof that other financing has been secured
  • Loan may be fixed, variable or adjustable
  • All loans will be determined by credit worthiness, collateral coverage, and term of loan
  • Prospective borrowers will need to provide financial statements for the last 3 years of operation.