Revolving Loan Fund

The Joint Industrial Development Authority's Revolving Loan Fund (RLF) is designed to provide "gap" financing for small and emerging businesses in Wythe County in order to create or save jobs. Financial gaps appear when traditional debt financing and private equity are inadequate to meet project needs. The RLF has been in existence since 1997 and has already helped several Wythe County businesses bridge the gap between their needs and other sources of financing.

Uses

• Land acquisitions
• Building acquisitions
• Construction or renovations
• Purchase of machinery and equipment
• Working capital

Terms

• Projects must save or create one job for every $20,000 borrowed.
• Interest rates are determined by the appropriate U.S. Treasury Bond maturity rate.
• Length of the loan is determined by the intended use of the loan. Terms usually range from 1 year to 15 years.
• 1% loan origination fee to be included in the loan and amortized over the life of the loan (minimum $500).
• Private financing equal to or greater than the amount of RLF loan will be required. A cash equity investment of at least 10% is required.
• A secondary lien will be considered if required by a primary lender.
• A Project Review and Screening Committee will evaluate loan applications and recommend acceptance or denial of any application to the Joint IDA board of directors.