Revolving Loan Program

SEDC REVOLVING LOAN FUND(RLF)CHECKLIST

Financing Available: $100,000 or 25% of Total Project Costs (the lesser of) for projects that create/retain jobs. $40,000 or 25% for projects with lower or no job creation/retention.

Use of Loan Proceeds: Working Capital and/or Fixed Assets

Term of Loan: Term based upon collateral offered

Rate of Interest: 2% below primary lender's rate, floor of 3.50%

Downpayment: Typically a minimum of 10%

Typical Structure:

65% financed by Private Lender (1st Security Position)
25% financed by RLF (2nd Security Position)
10% financed by Equity Injection

How Long Does It Take: SEDC Board Meets on the Third Wednesday of each month. Only complete applications can be processed. Typically a credit decision can be made within 3 weeks after the first Wednesday (date applications are due) of each month

Collateral: Lien on Project Assets or Other Assets as negotiated. Subordinate only to Primary Lender.

Guarantees: Corporate Guarantee required on personal loans. Personal Guaranty required on corporate loans.

Eligible Businesses: Businesses operating for profit.

Area of Operation: Cherokee, Ida, Monona, Plymouth, Sioux, and Woodbury counties in Iowa; Cedar, Dakota, Dixon, and Knox counties in Nebraska; Union and Clay counties in South Dakota. Adjacent counties may also be eligible. Call SEDC for confirmation.

Job Creation Criteria: The project must create or retain jobs. Wages paid will also be evaluated.

Fees:

Processing Fee: one-time fee of 1% of RLF loan
Servicing Fee: annual fee of 1/2% of declining RLF balance
Closing Costs: Responsibility of Borrower.

Loan Application

Printable Applications:

SEDC Loan Application

Online Applications:

Online SBA 504 Loan Application