SCOG Revolving Loan Fund
Types of Revolving Loan Funs
The primary purpose of the Skagit Council of Governments Revolving Loan Funds is to financially assist start-up and existing business in Skagit County for retaining and creating jobs. Our funds (grants) come from the U.S. Economic Development Administration (EDA) program (Community Development Block Grant). As our loans are paid back, we accumulate funds to loan to other companies, hence our Revolving Loan Funds.
We have 3 separate Revolving Loan Funds:
· Business Development Revolving Loan Fund
· Micro-Enterprise Revolving Loan Fund
· Business Lending Revolving Loan Fund
Lien subordination is available to primary lenders.
|
|
Business Development RLF |
Micro Enterprise RLF |
Business Lending RLF |
|
Eligible Business |
Industrial Only |
All Types5 or less employees (including Owner) |
All types No size restriction |
|
Use of Funds |
Working capital Fixed assets, equipment |
Working capital Fixed assets, equipment |
Working capital Fixed assets, equipment |
|
Purpose |
Save or create jobs with loans to new or existing companies |
Technical assistance to micro company Loans to micro company |
Save or create jobs with loans to new or existing business |
|
Job Requirements |
One per $6,000 loaned |
51% of new jobs to low to moderate income Persons (can include owner) |
One per $25,000 loaned, 51% of new jobs to low to moderate income person |
|
Location |
Skagit County |
Skagit County |
Skagit County |
|
Loan Amount |
$5,000 to $125,000 |
$500 to $25,000 |
$5,000 to $150,000 |
|
Interest Rate |
1% below prime, adjusted annually |
Market rate |
Market rate |
|
Term |
Varies to 10 years |
Varies |
Varies to 10 years |
|
Equity Requirements |
10% to 25% |
10% to 25% |
10% to 25% |
|
Type of Collateral |
Varies (Personal guarantee, Equipment, Fixed assets, etc.) |
Varies (Personal guarantee, Equipment, Fixed assets, etc.) |
Varies (Personal guarantee, Equipment, Fixed assets, etc.) |
|
Bank Denial |
Required |
Not Required |
Not required |
Documents and Information Needed
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Loan Application
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Resume of principals (if corporation 20% or more ownership)
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Statement from financial institution declining applicant’s request for this loan (Business Development RLF only).
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Last two years fiscal year end business tax returns; financial statement, including balance sheets and income statements; interim business financial statements.
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Last two years personal tax returns with supporting schedules (for corporation stockholders with a 20% or more ownership): current personal financial statement.
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Business Plan (to include two year projection)
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Copy of lease if applicable
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Partnership Agreement if applicable
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Articles of incorporation/bylaws/corporate license if applicable.
Contacts
Applicants that have a project that may be suitable for the Revolving Loan Funds should contact:
Kelley Moldstad, Executive Director
Skagit Council of Governments
204 W Montgomery
Mount Vernon WA 98273
(360) 416-7875
(360) 336-6116 Fax
kelleym@scog.net
For Economic and Business Development
Don Wick, Executive Director
Economic Development Association
of Skagit County
204 W Montgomery
Mount Vernon WA 98273
(360) 336-6114
(360) 336-6116 Fax
don@skagit.org
For Technical Assistance
Ryan Patrick, Bus. Development Specialist
Economic Development Association
of Skagit County
204 W Montgomery
Mount Vernon WA 98273
(360) 336-6114
(360) 336-6116 Fax