The City of Anderson has established a Revolving Loan Fund (RLF) program that operates through the Department of Community Services and Economic Development. The program offers low interest loans up to $150,000. Rates are as low as 75% of the Prime Rate.
The major goal of the Revolving Loan Fund is to create new permanent jobs or retain existing jobs for Anderson. To apply for the Revolving Loan Fund, please print and complete the following forms:
Eligible Applicants & Projects
Generally, any small business is eligible if they meet the definition of SBA size criteria. Exceptions are retail / commercial businesses in well developed areas, real estate development companies, or construction firms. In addition, the applicant must be within the Anderson city limits or commit to locate within the city limits 60 days after the loan closing. The applicant assures that for every $15,000 of public sector funds borrowed, one new job will be created.
These are just a few examples of how the RLF can be used:
- Site acquisition or working capital
- Plant acquisition or construction or property rehabilitation
- Equipment purchases or leases as well as inventory acquisition
Following a loan selection criteria, the RLF is structured as a tandem loan program that works in cooperation with the major banks and the Micro Loan Program at the Flagship Enterprise Center in Anderson. Any loan request must have the support of at least one participating bank or the Micro Loan Program that will supply a minimum percentage of the total loan request, negotiated under their normal loan conditions and criteria.
If the bank or Micro Loan Program determine they can make the loan with RLF assistance, then they will submit a request to the Anderson Economic Development Revolving Loan Fund Board
The Revolving Loan Fund program is designed such that up to 33% of the total project is lent through the RLF and at least 67% is lent by a private lender. In addition, the borrower may be required to make an equity injection of 10% of the total project cost.
The private lender’s portion of the project will be an interest rate as negotiated between the lender and the borrower. The RLF’s portion of the loan will be flexible in terms of interest rates, but in no case will the rate be lower than 75% of the Prime Rate.