Conditions of the Revolving Loan Fund (not all inclusive list)

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Loan Purpose

• Land costs, including engineering, legal, grading, testing, and site mapping; and related costs associated with acquisition and preparation of land.

• Building costs, including real estate, engineering, architectural, and legal; and related costs associated with acquisition, construction, and rehabilitation of buildings.

• Machinery and equipment costs - including delivery, installation, engineering, architectural, legal, insurance, and related costs.

• Other costs contributing directly to the value of project fixed assets, such as sales and use taxes, and interest on interim construction financing.

• Adequate contingency reserves.

• Working and start-up capital costs.

• Infrastructure costs – individual categories must be identified in the loan application.

• Refinancing loans by other lenders if there is sound economic justification and there is sufficient documentation in the loan write-up that the RLF is not replacing private capital solely to reduce the risk of loss to an existing lender(s) or to lower the cost of financing to the borrower.

 

Non-Allowable Business Types:

• Speculative investment companies

• Real Estate investment companies

• Lending institutions

• Gambling operations

• Marijuana dispensary

Non-Allowable Uses of Funds

• Projects that could cause unemployment resulting from the relocation of a business

• Projects which include facilities for the generation, transmission, or distribution of electrical energy

• Projects located outside of the 12 Counties we serve

• Projects that do not have a reasonable assurance of repayment, in the opinion of EAPDD, of the proposed loan

• Partially completed construction is ineligible

Loan Amounts
Loans will not ordinarily be made in amounts less than $10,000 and no more than $300,000 to any one business or organization.

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Standard Interest Rates
EAPDD reserves the right to establish the interest rate for each loan based on a comprehensive evaluation of multiple factors, including but not limited to the following: risk profile, job/cost ratio, equity, loan term, and collateral.

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Repayment Term
Generally, funds used for vehicles, machinery, and equipment will have terms up to 5 years. For real estate, the loan will have terms up to 15 years. Terms of the loan will be considered on a case-by-case basis.