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The Revolving Loan Fund

Low Interest Loans for Expanding and Start-Up Businesses in Mobile, Baldwin, and Escambia Counties

What is a Revolving Loan Fund?

The South Alabama Regional Planning Commission Revolving Loan Fund is a locally controlled source of capital used to finance small business start-up and expansion whose projects will create permanent jobs. By combining RLF and bank financing the borrower can realize an effective rate well below market rates.

What businesses are eligible?

RLF funding targets are for profit businesses engaged:

• Manufacturing / Industrial
• Service
• Other small businesses where there is a demonstrable community need

What can the funds be used for?

• Purchase Land
• Construct New Buildings
• Renovate / Modify Existing Buildings
• Purchase Equipment
• Provide Working Capital

What are the advantages with RLF?

To the business: attractive rates (at or below prime).

To the bank: attractive financing packages that lower debt service.

What are the loan limits?

The loan limit is usually determined by the number of jobs created / retained.

There is a standard of job to cost ratio of an average of $10,000 per job.

No more than 30% of a loan may be used for working capital.

The minimum amount is $10,000.00.

The maximum amount is $125,000.00

Loan control

The RLF program is a local economic development initiative. All decisions are made locally by South Alabama Regional Planning commission's Loan Committee. The local emphasis means a faster response to loan requests.

How do you apply for a loan?

The first step is an interview to determine if the proposed project meets the program guidelines. If the project is found to have merit and possibility for success, the prospective borrower is asked to complete a loan application and submit it to the South Alabama Regional Planning Commission.

Decisions concerning approval or disapproval of loans, terms and interest rates are made by the RLF Loan Committee. The Loan Committee following state and federal regulations, review all loan applications with a minimum of red tape. Local people making local decisions means a quicker turn-around for all loan requests.

For further information contact:

South Alabama Regional Planning Commission
Department of Employment and Economic Development
Phone: 251-652-0585
Fax: 251-433-0148