Wabasso EDA Revolving Loan Fund
Category: Revolving Loan Fund
The purpose of the Wabasso EDA RLF is to provide gap financing for new and/or existing businesses, and/or retention of significant jobs with viable plans for making improvements, locating or expanding in the City of Wabasso. The RLF may also be used to provide financing for community development and infrastructure improvements that would promote economic development in the City of Wabasso.
Other loan parameters include:
- Require that any potential applicants have secured other matching funds on at least a 1:1 ratio.
- Terms and conditions of any loan will be at the discretion of the Wabasso EDA. Interest rates and terms will be flexible and contingent upon amount of loan, equity, collateral, and matching fund ratio. Interest rates will reflect the length of the term and the risk of each loan and the rate will be fixed at the time of approval.
- Terms: Working capital, 0-3 years; Machinery & Equipment, 5-10 years; Real Estate, 5-10 years
- 1 FT equivalent job must be created or retained for every $10,000 of loan proceeds. If jobs are NOT created, the business must show that the RLF monies will have significant community impact through other means (i.e.: increased tax base). Jobs created should be made available to low and moderate income people if at all possible.
- Loans may be amortized for a longer term and ballooned at a sooner date as deemed appropriate by the EDA.
- The RLF will take a written secured subordinate position on collateral as a minimum requirement; such statements will be filed with appropriate agencies.
- Applicants will be required to provide with application any and all information deemed necessary by the EDA – see checklist below! Applications will be reviewed by the EDA with recommendations made to the Wabasso City Council. All final decisions will be made by the City Council.
- Personal guarantees and collateral assignment of life insurance policies on principals may also be required.
- Certificate of insurance required on property and building