Revolving Loan Fund (RLF)
The purpose of the RLF is to provide business financing that promotes economic growth in Adams County through recruitment, expansion, and retention of business and industry. The RLF shall provide financing to fill gaps in the local markets and to stimulate private sector capital investments. The RLF shall not be the primary source of financing for projects and will work in partnership with lending institutions.
The RLF shall address all requests not addressed by other funds, and shall look at projects that provide a public economic benefit to a community. Determining public benefit varies within the CWED Region. There are both direct and indirect benefits that can be considered.
RLF Terms and Conditions
Loan terms and conditions shall be based on need and ability to repay. It is the intent of the RLF to be as flexible as possible while operating in accordance with prudent lending policies. Standards shall include the following:
Loan amounts are subject to fund availability and the scope and type of project being undertaken. Generally, loans shall range in size from $25,000 to $200,000 and should represent no more than 40% of a project’s total cost. Loan amount shall not exceed amount of funds provided by the senior lender. The maximum loan per project is $1,000,000.
A minimum of 10% equity injection of total project cost is required. For new businesses a minimum of 10% must be cash injection.
Interest Rate & Fees
The target interest rate is 4.5% on loans of 10 years or less and 5.0% on loans over 10 years. The interest rate floor is 3%. The loan administrator may negotiate the interest rate as appropriate given the risk level, qualitative job creation, community impact, and competitive financing terms. An application fee of $100 should be submitted with the application and is non-refundable. In addition, the closing fee is 1.0% of the loan amount. Late fees will be 5.0% with a minimum of $25 and maximum of $250. The CWED Board will have final review and approval of the rate when the loan is presented.
1)Working capital loans shall not exceed a term of 5 years
2)Loans for machinery, equipment, and fixtures are typically structured over 5 to 7 years and shall not exceed a term of 10 years, or the life of the pledged assets, the lesser thereof.
3)Real estate loans shall not exceed a term of 10 years, but may be amortized for a maximum of 20 years.
4)Balloon payment may be utilized.
5)Additional terms may apply.
Unlimited personal guarantees are required from any person with a 20% or greater ownership interest in the business. Corporate guarantees are required, if applicable.
Typically, one full-time job is created/retained for each $35,000 loaned. The maximum time permitted to create jobs is 3 years. Businesses may be allowed up to 5 years to create jobs upon written request and board approval.
Monthly payments required. Under special circumstances, payment of interest and/or principal may be deferred for a period of time not to exceed twelve (12) months.
Micro Loan Fund
The Micro Loan Fund is designed to provide small loans to start-up, newly established, or growing small businesses. A key objective of the program is to assist business owners who have traditionally had difficulty accessing debt financing.
Each Applicant is expected to have good character, strong commitment to their business idea, signs of feasibility and economic viability, and a credit history to suggest a reasonable assurance the loan will be repaid. The applicant should have some management skills or relevant industry experience to support the project’s purpose.
Use of Funds
Funds may be used for working capital, inventory purchases, machinery and equipment, furniture, fixtures, supplies, leasehold improvements, minor building renovation/rehabilitation, or natural disaster recovery.
Micro Loan Terms and Conditions
Loan terms and conditions shall be based on need and ability to repay. It is the intent of the Micro loan to be as flexible as possible while operating in accordance with prudent lending policies.
$5,000 to $50,000
Private funds must be invested with a minimum of 20% matching requirement.
The interest rate shall be established by CWED Board.
Not to exceed 7 years. Working capital loan terms not to exceed 5 years.
Collateral is required and will usually take the form of a security interest in all of the applicant’s assets. Real estate and equipment are common assets pledged. Personal Guarantees. Unlimited personal guarantees are required from any person with a 20% or greater ownership interest in the business.
Monthly payments required. Under special circumstances, payment of interest and/or principal may be deferred with Board approval for a period of time not to exceed twelve (12) months.
Adams County Special Projects Fund (SPF)
The Adams County Special Projects fund was established to provide a flexible and fair financing option for business owners and entrepreneurs.
Though no maximum or minimum loan amounts are set, loan activity is subject to the availability of loan funds.
Determined by the Adams County Economic Development Board of Directors.
Terms and Conditions
5-year maximum on loans made for working capital, 7-year maximum on equipment, 10-year maximum for real estate. Terms may be shorter based on funds availability and other factors.
Appropriate collateral is required and may include personal and unlimited guarantees.
FOR ALL LOAN APPLICATIONS: Applications shall be completed and submitted to the Program Administrator.
Review/Approval: The Program Administrator shall compile the application and supporting documents required to underwrite the loan and verify that loan request meets program criteria and follows prescribed standards. The applicant shall be notified as to the date and time of the CWED Board meeting. The applicant is required to attend the meeting. The CWED Board will review the written loan proposal that contains information about the business, its principals, the current project and use of funds requested, financial analysis and other information relevant to the underwriting, prior to approving loans.