Crater PDC Revolving Loan Fund Program
The RLF Program is for fixed asset and/or working capital projects. Projects range from $50,000 to $500,000+.
Location: EDA eligible areas include the Cities of Colonial Heights, Emporia, Hopewell and Petersburg, and the Counties of Charles City, Dinwiddie, Greensville, Prince George, Surry and Sussex
Applicants: For-profit commercial, service, manufacturing and distribution business.
Uses: Fixed assets and working capital
Structure: Direct, subordinated loans up to $250,000. Bank funds 40 to 70%, usually 50%, and RLF provides up to 50%, usually 40%, minimum equity of 10%
Term: Up to 20 years based on useful life of assets, generally match bank’s term.
Rate: Fixed at prime or higher (4% minimum), 5 year adjustable
Collateral: Second lien on assets being financed, guarantees
Jobs: 1 full time equivalent job for each $35,000 of RLF funds
Other: EEO, non-relocation, federal prevailing wage required for construction projects
Application fee: $200 non-refundable fee due with application
Closing costs: 1 1/2% loan fee, applicant responsible for closing costs; $2,500 average for WC and M&E, $4,500 for RE.