Revolving Loan Fund (RLF)

The Revolving Loan Fund (RLF) is the oldest loan fund that South Central Kansas Economic Development District, Inc. (SCKEDD) manages.  Traditionally, the loans that comprise this portfolio involve a higher risk than loans in other SCKEDD programs.  This program is a locally administered program of the U.S. Economic Development Administration.

 Eligibility

• For private enterprises, public and non-profit small business located in the 14 county service area. 
• Loan turndown letters from area lenders are required for all RLF loans.
• A business plan is required.  Quality of plan is tied to the complexity of the project.
• Jobs must be created or retained by the project. 

 Projects Financed

• Financing is available for most business needs; however, restructuring of existing debt is generally not eligible and must be approved by EDA.

• If the project involves construction, Davis-Bacon wage rates must be paid.
• Project can be coupled with other internal SCKEDD loan funds, as well as other lending sources.

Loan Amount

• RLF Loans up to $300,000 from an internal revolving loan fund pool.  Pool of funds is limited.

Interest Rate/Fees

• Private Enterprises – Fixed interest rate ranging from Prime + 1.5% to Prime + 4.25%, Minimum of 9%.
• Public and Non-Profits – Fixed interest rate ranging from Prime + 1 % to Prime + 4.25%, Minimum of 9%.
• Origination fee of 1% of loan amount.
• Miscellaneous fees incurred in the process of approval and closing (i.e. credit bureaus inquiries, mortgage filings, U.C.C. searches and filings, appraisals, title work, etc.)

Repayment

• Principal and interest payment schedule based on the cash flow of the business and use of proceeds -
  • Land and Building                      15 years
  • Machinery and Equipment          7-10 years
  • Inventory and Working Capital   5-7 years
• Principal payments may be deferred if projections do not show the ability to pay principal right away.
• Where necessary, interest may be capitalized for a period of time.
• There is no penalty for prepayment of an RLF loan.

Collateral

• RLF loans are secured by the best collateral position available and can be subordinated.
• Personal guarantees of the owner(s) of the business are required.

 Please note that the overall portfolio must maintain a leverage ratio of 2:1, private to RLF funds.  Therefore some loans may be made without a private match, but these are held to a minimum.

Download the loan application here.  Or fill out the application on-line at www.kacdc.com.

For More Information Contact:

SCKEDD
316-262-7035
200 W. Douglas, Suite 710
Wichita, Kansas 67202