Total Pool - $1,000,000.00
Minimum long term loan size will be $50,000.00 up to a maximum of $250,000.00. Short term loans will not exceed $50,000 for any one company at any given time. Total loan packages that may include both short term and long term loans may not exceed $250,000. The LEDA RLF interest rate will be a fixed rate based on current prime rate at closing, plus 1% with a floor of 5%. All loans will be at a fixed rate of interest. LEDA RLF will charge a one-time $250 nonrefundable application fee. In addition, the borrower will be charged a closing fee equal to 1% of the total loan amount.
The LEDA RLF will target assistance to existing small business concerns in the City of Lynchburg. Priority will be given to redevelopment projects and expansion proposals that create jobs, located within geographic areas of the City that have a Masterplan (Riverfront, MidTown, Tyreanna, 5th Street), LEED Certified Construction Projects, Technology Zone Applicants, and participants in city supported incubator programs.
Those eligible for LEDA RLF will be private, for-profit firms which may be included in the following definition of small business: A business that is 1) independently owned, 2) with net worth or net assets not to exceed $6 million, 3) with average net profit after Federal income taxes for the preceding two years of less than $2,000,000 and 4) with less than 500 employees. In addition, private non-profit organizations may be eligible if they contribute to the City’s real estate tax base and can provide collateral. LEDA RLF can be used for a variety of project costs, including real estate acquisition, new construction, rehabilitation, equipment & inventory purchases and working capital. LEDA RLF cannot however be used for the refinancing of existing debt.