Total Pool - $660,000.00
Allows the BDC to participate with financial institutions on a loan project by providing “gap” financing. “Gap” financing allows a project to qualify for traditional bank financing at a lesser dollar amount, with the BDC financing the “gap”. The maximum loan amount by the BDC is $125,000.00. The loan recipient actually has two separate loans, one with the financial institution and one with the BDC, which must be presented to and approved by the Revolving Loan Fund Committee. Loan terms are based on the life of the assets acquired as a result of the loan, and the rate is a fixed rate of Prime -1%, with a floor of 5%. There is a non refundable application fee of $100.00. There is a one percent (1.00%) origination fee if the loan is approved. The Revolving Loan Program requires that for each $40,000 the BDC lends, one job must be created over a three-year period.
RLF LOAN PROGRAM
ELIGIBILITY REQUIREMENTS & PARAMETERS
Project Investment Parameters