Appalachian Regional Commission Distressed County Revolving Loan Fund
CONTACT:
Tina Meunier, Business Development Coordinator, at Buckeye Hill-Hocking Valley Regional Development District. Phone 740-376-0360.
BUSINESS TYPE:
The ARC DISTRESSED Revolving Loan Fund is available to any new or existing business engaged in a manufacturing, retail or service enterprise.
BUSINESS LOCATION:
The business could be eligible for funding if it is located in the following areas. Athens County, Meigs County, Monroe County, and Morgan County.
APPROVED USE:
Funds may be used for the acquisition and improvement of land, buildings, plant facilities and equipment. New construction or renovation of existing facilities, modernization, demolition and site preparation and / or working capitol.
MAXIMUM LOAN:
Loans of $25,000.00 can be made with job creation or retention, one (1) job for every $25,000. Loans can be made up to 80% of the project cost in Athens or Meigs counties, and 50% of total project cost in Morgan and Monroe counties.
LOAN TERM:
The ARC Revolving Loan Fund program financing will not be offered for a term longer than the life of the asset financed. A standard term for financing will be five (5) to ten (10) years. This term will however vary dependent on the life of the assets involved and the financing needs of the business/industry for the project. A business/industry may be offered a term up to twelve (12) years for real estate and up to seven (7) years for machinery and equipment with the maximum term not to exceed the life of the asset.
INTEREST RATES:
Interest rates are determined on a case-by-case basis with a minimum interest rate of 4%. All projects are rated dependent on risk. Rates are fixed for the term of the loan. Each loan will be secured by appropriate collateral, mortgages or liens in addition to a promissory note.
EQUITY REQUIREMENTS:
Business owners are required to invest a minimum of 5% of the total project cost. NOTE: The borrower may choose to invest the difference between the RLF Program participation and the total project cost when bank participation is not available.