Revolving Loan

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

SCKEDD Loan Application

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Eligibility

Your business could be eligible for the RLF Loan Program if it meets the following standards:

  • For private enterprises, public and non-profit small business must be located in the 14 county service area.
  • Must present loan turndown letters from area lenders.
  • Must present a business plan. The quality of plan is tied to the complexity of the project.
  • Jobs must be created or retained by the project.

Projects Financed

Characteristics of projects financed typically include:

  • 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 7%.
  • Public and Non-Profits – Fixed interest rate ranging from Prime + 1 % to Prime + 4.25%, Minimum of 7%.
  • Origination fee of 2% of loan amount with a maximum of $2,000.
  • 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.

For More Information Contact

Christie Henry, Lending Program Manager
E-mail: christie@sckedd.org
(316) 262-7035
9730 E. 50th Street N.
Bel Aire, Kansas 67226