CDBG/RLF Loan Program
Description
Stimulate economic development activity by assisting the private sector to create/retain jobs for low-to-moderate income (LMI) persons and to fill a funding gap when alternative sources of public and private financing are not adequate. Use of Funds
Working capital; Furniture; Fixtures & Equipment; Land & Building Purchases. Financing Methods
Direct funding by Headwaters RC&D Area, Inc.; $20,000 Full-time equivalent job with 51% of jobs available to LMI individuals. Qualification
CDBG/RLF loans fill a funding gap when alternative sources of funds are inadequate or unavailable based on number of full-time equivalent jobs created or retained. Loan Amounts
Generally between $50,000 to $100,000 Term of Loan
Working Capital: 5 - 7 years
Equipment: 10 Years Maximum (based on life of equipment)
Land/Buildings: 15-20 Years Interest Rate (Subject to Change)
6% Interest Rate. Fees (Subject to Change)
Loan Fee: 1% of loan amount.
Collateral
Available Business and Personal Assets. Equity & Matching Funds Requirements
Matching Funds: 1:1
Maximum 5:1 Debt-to-Equity Back to Loan Program Home Page | 
