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Revolving-Loan-Fund

RLF- A Capital Resource for Expanding and Start-Up Businesses

The Southwest Georgia Revolving Loan Fund (RLF) is a locally controlled source of capital used to finance start up and expanding businesses whose projects will create permanent jobs and leverage private sector investment. As borrowers repay their RLF loans, the principal and interest payments are returned to the fund for lending to other businesses to create more jobs and investement opportunities.

GUIDELINES

  • Borrower must be the user of loan proceeds.


  • Business start-up or expansion must result in the creation of permanent jobs.


  • RLF can finance up to 33.3% of the total project cost.


  • Businesses must provide 10% (minimum) of the project cost in equity.


  • For every $20,000 from the RLF, borrower must create one full-time job or the equivalent of two, part-time jobs.


  • Fixed prime interest rates are available.



  • Loans available up to ten (10) years.

  • Principals and business must be credit-worthy and generate sufficient cash flow to repay the debt.


  • Principals of the business must provide personal guarantees.


  • Hazard and key man insurance naming Southwest Georgia Regional Commission as loss payee is required.


  • Borrower must pay for all legal costs associated with the transaction before loan closing.


  • Borrower must pay a one-time processing fee of 2.5% of the loan due at the time of closing and 1% closing fee.


  • Businesses must be located in Baker, Calhoun, Colquitt, Decatur, Dougherty, Early, Grady, Lee, Miller, Mitchell, Seminole, Terrell, Thomas or Worth Counties.


REVOLVING LOAN FUND

Frequently Asked Questions and Guidelines

RLF APPLICATION

  • What is a RLF?

    The Southwest Georgia Revolving Loan 

    Fund (RLF) is a locally controlled source 

    of capital used to finance start-up and 

    expanding businesses whose projects will 

    create permanent jobs and leverage private 

    sector investment.  As borrowers repay their 

    RLF loans, the principal and interest 

    payments are returned to the fund for 

    lending to other businesses to create more 

    jobs and investment opportunities.

  • What Businesses are Eligible?

    The businesses targeted for RLF financing 

    are:

    1.  Small manufacturing companies.

    2.  Manufacturing related services.

    3.  Developing services that have a 

    uniqueness or technology that will add 

    value to the region’s economy. 

    4.  Other businesses that may help a 

    community improve its development potential. 

    Generally, retail businesses are not eligible.

  • How can funds be used?

    Proceeds from RLF loans can be used to:

    • Purchase land & buildings.

    • Construct new buildings or renovate/

    modify existing buildings.

    • Provide for working capital for up to

    the first six months of operation.

  • What are the advantages?

    There are many advantages to utilizing the 

    Southwest Georgia RLF for both borrowers and 

    participating banks that include:

    1. Attractive Interest Rates 

    2. Bank Participation 

    3. Local Control 


    View these advantages in more detail below 

  • Attractive Interest Rates

    Interest rates on RLF loans are generally loans 

    fixed at the prime rate and determined by the 

    project needs.  By combining RLF and bank 

    financing, the borrower can utilize an effective

     rate well below market rates.


  • Bank Participation

    The RLF was not established to compete with the 

    banking community or to be a lender of last 

    resort.  Instead, it was established to provide 

    gap financing, or “fill the gap” between what the 

    bank can reasonably lend on a project and what

     the business can provide in equity.  Also, by 

    utilizing RLF dollars, banks can offer attractive 

    financing packages that lower debt services.  

    The bank maintains a 1st mortgage on 100% of the 

    collateral.  Southwest Georgia Regional 

    Commission does the packaging and therefore is

     little or no paperwork for the bank.

  • Local Control

    The RLF program is a local economic development

    initiative.  All decisions are made locally by

    SOWEGA Economic Development Corporation 

    which is a representative of the regional 

    community.  The local emphasis means faster 

    responses to loan requests and a minimum of 

    “red tape” for you and your customer.  

    However, state and federal regulations do apply.

Contact us today!

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