Revolving Loan Funds

The primary business sectors are agribusiness, retail firms, service sector, and manufacturing companies located in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, or Rock County.

The primary use of RLF funding are real estate, machinery and/or equipment, fixed assets, and working capital financing.

One full-time equivalent job, created or retained, is preferred for every $20,000 of loan proceeds from the RLF. Loan amount cannot exceed 50% of total project costs.

Loans may range in size from $5,000 to $100,000 but must be matched by another financing source on a 1:1 basis. Applicants must show that they cannot leverage affordable financing from any other means.

Interest rates are as low as 75% of Prime Interest Rate with loan repayment typically 5-7 years for working capital or 7-15 years for machinery, equipment, and real estate. Balloons may be required.

An origination fee of 1% or 1.5% of loan proceeds, dependent on project, is required. Closing legal costs and filing fees are the responsibility of the Borrower. The RLF most often is subordinate to private bank financing. Personal guarantees and collateral of life insurance are typically required. Other terms may apply.

Applications are accepted on a year-round basis. The Revolving Loan Fund Committee meets as needed to consider loan requests. View the RLF Checklist and RLF Application to get started.