SEDC REVOLVING LOAN FUND (RLF) PROGRAM
| Financing Available: | The lesser of $100,000 or 25% of Total Project Costs |
| Use of Loan Proceeds: | Working Capital and/or Fixed Assets |
| Term of Loan: | Term based upon collateral offered |
| Rate of Interest: | % below bank lender’s rate, floor of 3.5% |
| Down Payment: | Generally at least 10% |
| Typical Structure: | 65% financed by Bank Lender (1st Lien Position) 25% financed by SEDC RLF (2nd Lien Position) 10% financed by Equity Injection |
| Application Deadline: | Application deadline is the first Wednesday of each month. |
| Collateral: | Lien on Project Assets or Other Assets as negotiated. Subordinate only to Bank Lender. |
| Guarantees: | Corporate and/or Personal Guaranty required on all loans. |
| Eligible Businesses: | Same as SBA requirements. |
| Ineligible Businesses: | Non-profit, consumer and marketing coops, floor plans, gambling concerns, any concern involved in speculation. |
| Area of Operation: | Generally includes Buena Vista, Cherokee, Clay, Crawford, Dickison, Ida, Lyon, Monona, O’Brien, Osceola, Plymouth, Sioux, Woodbury counties in Iowa; Dakota and Dixon counties in Nebraska; Union and Clay counties in South Dakota. |
| 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 ½% of declining RLF balance Closing Costs are responsibility of Borrower. |