Revolving Loan Funds
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PROGRAM DESCRIPTION
The Revolving Loan Funds (RLF) provide for up to one-half of the financing requirements for a term of up to 20 years at a fixed rate. The purpose is to assist private business and industry to finance improvements, expansion, and acquisition of equipment, inventory, and working capital. The program's long-term goal is to provide stability and diversity in the economy. Their short-term goal of the program is to generate permanent employment.
Target firms and industries shall include those manufacturing, trade or service sectors that encourage secondary activity elsewhere in the economy, especially those sectors which lend most to future growth. Those firms that utilize the area's natural resources and process them to final stages within the area are also targeted.
Funds and technical assistance for the RLF programs are provided, in part, through the Idaho Department of Commerce, Idaho Department of Employment, Economic Development Administration (EDA), Housing and Urban Development (HUD), Small Business Administration (SBA), and Department of Labor (DOL).
FINANCING TERMS
Loans from the RLF require a 15% minimum capital injection from the borrower. There must be a 50% financing match by a bank or other lending institution. Their collateral consists of a first lien position on assets.
PAC is the subordinate lender. The established minimum RLF portion is $25,000 with a maximum of $150,000 with fixed interest rate. The term of the loans are for a period not to exceed 5 to 20 years. Normally, working capital and inventory will have a term of five years, equipment for seven years, and real estate for 20 years.
ELIGIBILITY REQUIREMENTS
An eligible small business must be a for-profit corporation, partnership or proprietorship, and must be unable to obtain comparable funding for the project from private sources. The net worth of the business may not be in excess of $6,000,000 and its net profit after taxes must have averaged less than $2,000,000 during the previous two years.
The project should create/retain one full-time, permanent job or full-time equivalent, for every $35,000 borrowed from the RLF, within a two-year period.
ELIGIBLE PROJECTS/COSTS
INELIGIBLE PROJECTS/COSTS
COLLATERAL
Usually the mortgage or Deed of Trust on land and buildings being financed, liens on machinery, equipment and fixtures, lease assignments, personal assets and personal guarantees will serve as collateral.
FINANCING COSTS
A Processing Fee of 1.5%, Escrow Fees, Legal Fees, Title Insurance, Recording and Filing Fees, and Environmental Fees may be applicable.
PREAPPLICATION INFORMATION
Panhandle Area Council, Inc. does not discriminate by reason of race, color, religion, sex, marital status, disability, age, or national origin in services or accommodations offered or provided to our loan clients and potential loan clients. PAC is an equal opportunity provider.
The Revolving Loan Funds (RLF) provide for up to one-half of the financing requirements for a term of up to 20 years at a fixed rate. The purpose is to assist private business and industry to finance improvements, expansion, and acquisition of equipment, inventory, and working capital. The program's long-term goal is to provide stability and diversity in the economy. Their short-term goal of the program is to generate permanent employment.
Target firms and industries shall include those manufacturing, trade or service sectors that encourage secondary activity elsewhere in the economy, especially those sectors which lend most to future growth. Those firms that utilize the area's natural resources and process them to final stages within the area are also targeted.
Funds and technical assistance for the RLF programs are provided, in part, through the Idaho Department of Commerce, Idaho Department of Employment, Economic Development Administration (EDA), Housing and Urban Development (HUD), Small Business Administration (SBA), and Department of Labor (DOL).
FINANCING TERMS
Loans from the RLF require a 15% minimum capital injection from the borrower. There must be a 50% financing match by a bank or other lending institution. Their collateral consists of a first lien position on assets.
PAC is the subordinate lender. The established minimum RLF portion is $25,000 with a maximum of $150,000 with fixed interest rate. The term of the loans are for a period not to exceed 5 to 20 years. Normally, working capital and inventory will have a term of five years, equipment for seven years, and real estate for 20 years.
ELIGIBILITY REQUIREMENTS
An eligible small business must be a for-profit corporation, partnership or proprietorship, and must be unable to obtain comparable funding for the project from private sources. The net worth of the business may not be in excess of $6,000,000 and its net profit after taxes must have averaged less than $2,000,000 during the previous two years.
The project should create/retain one full-time, permanent job or full-time equivalent, for every $35,000 borrowed from the RLF, within a two-year period.
ELIGIBLE PROJECTS/COSTS
- Projects must be located within the five northern counties of Idaho Listed above.
- Land and/or building purchases.
- Machinery and equipment purchases.
- New business acquisition.
- Working capital.
- Some soft costs such as interim interest, appraisal fees, etc.
INELIGIBLE PROJECTS/COSTS
- NOT for non-profit organizations, certain media, lending institutions, gambling facilities, real estate speculations, and recreation facilities which are not open to public.
- Debt refinancing.
COLLATERAL
Usually the mortgage or Deed of Trust on land and buildings being financed, liens on machinery, equipment and fixtures, lease assignments, personal assets and personal guarantees will serve as collateral.
FINANCING COSTS
A Processing Fee of 1.5%, Escrow Fees, Legal Fees, Title Insurance, Recording and Filing Fees, and Environmental Fees may be applicable.
PREAPPLICATION INFORMATION
- Current personal financial statements and tax returns (3 years) for all principals.
- Company historical financial statements and tax returns (3 years), to include balance sheet and profit and loss statements.
- Resumes of principals
- Short description of business.
- Business Plan
- Personal financial statements of principals (less than 90 days old).
- Two year projected balance sheet and profit and loss statement.
- Itemization of project costs:
- Land
- Site Improvement
- New Construction
- Renovation
- Equipment
Panhandle Area Council, Inc. does not discriminate by reason of race, color, religion, sex, marital status, disability, age, or national origin in services or accommodations offered or provided to our loan clients and potential loan clients. PAC is an equal opportunity provider.
