Revolving Loan Fund
The South Central Alabama Development Commission’s Revolving Loan Fund (RLF) Program is a locally controlled source of capital used to provide gap financing to start-up and expanding businesses in Bullock, Butler, Crenshaw, Lowndes, Macon, and Pike counties. The primary goal of the program is to stimulate the economy through the creation of local jobs. The RLF targets small to medium-sized businesses, which are financially sound but are unable to secure adequate financing for start-up or expansion projects. Loans can be made up to $150,000 for financing land, buildings, equipment, and working capital. The RLF was not established to compete with private lending institutions but to complement commercial lending programs by providing necessary “gap finance” once the bank and owner have reached their financial limits.
The advantages of an RLF are attractive interest rates and extended terms that fill the gap of private financing. The use of an RLF can significantly reduce a project’s overall debt service and distribute the loan risk among several entities. Borrowers must be credit worthy, submit financially sound proposals, provide adequate collateral to secure the loan, and provide personal guarantees. The loan repayments are returned to the RLF, thereby recycling and building the pool of funds available to the business industry.
Loans are reviewed by the Revolving Loan Fund Committee, which is comprised of bankers, economic development professionals, community-based organizations, and business owners from the SCADC region. The RLF Committee is called to review loans on an as needed basis once a complete loan package has been submitted to the SCADC loan officer.
Applications can be downloaded from this site and submitted by mail or e-mail. For more information about SCADC’s RLF please contact the following:
South Central Alabama Development Commission
5900 Carmichael Place
Montgomery, Alabama 36117
Phone: 334-244-6903 or 334-398-1214
- Link to Committee Members Page
- Downloadable Fact_Sheet
- Downloadable Checklist
- Downloadable Application
RLF Applicant Checklist
[ ] A COMPLETED LOAN APPLICATION FORM WITH SIGNED AGREEMENTS AND CERTIFICATIONS.
[ ] A HISTORY AND DESCRIPTION OF THE BUSINESS.
[ ] A CURRENT FINANCIAL REPORT TO INCLUDE BALANCE SHEET AND PROFIT AND LOSS STATEMENT (NOT OVER 60 DAYS OLD).
[ ] A BALANCE SHEET AND PROFIT AND LOSS STATEMENT FOR THE PREVIOUS THREE YEARS OR SINCE GOING INTO BUSINESS IF LESS THAN THREE YEARS.
[ ] A PRO-FORMA BALANCE SHEET AND PROJECTED OPERATING STATEMENT FOR TWO YEARS (FIRST YEAR TO HAVE MONTHLY CASH FLOW OF OPERATIONS).
[ ] IF A FRANCHISE, INCLUDE A COPY OF THE FRANCHISE AGREEMENT AND THE FRANCHISOR’S FTC DISCLOSURE STATEMENT.
[ ] IF A CORPORATION, A RESOLUTION FROM THE BOARD OF DIRECTORS AUTHORIZING THE BORROWING OF THE FUNDS AND A COPY OF THE RECORDED ARTICLES OF INCORPORATION.
[ ] IF A PARTNERSHIP, PROVIDE A PARTNERSHIP AGREEMENT AND CERTIFICATE AS TO THE PARTNERS.
[ ] RESUME OF PRINCIPLALS WITH 20% OR MORE OWNERSHIP IN THE BUSINESS.
[ ] PERSONAL FINANCIAL STATEMENTS ON PRINCIPALS WITH 20% OR MORE OWNERSHIP IN THE BUSINESS. STANDARD BANK FINANCIAL STATEMENT FORM.
[ ] IF PURCHASING LAND, PROVIDE A STATEMENT OF INTENT FROM OWNER TO SELL STATING ACREAGE AND SELLING PRICE.
[ ] IF PURCHASING A BUILDING, A CURRENT APPRAISAL ON AN “AS IS” AND “COMPLETE” BASIS.
[ ] IF NEW CONSTRUCTION, WRITTEN COST ESTIMATES OF NEW CONSTRUCTION FROM QUALIFIED CONTRACTOR.
[ ] IF PURCHASING EQUIPMENT, WRITTEN QUOTES FROM VENDORS.
[ ] LETTER FROM FIRST MORTGAGE LENDER STATING THE AMOUNT, TERMS, RATE AND CONDITIONS OF ITS PARTICIPATION.
[ ] A STATEMENT CONCERNING THE PURPOSE OF THE LOAN AND ITS POTENTIAL IMPACT (JOBS TO BE CREATED OR RETAINED, TYPE OF JOBS, SALARY RANGE).