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Purpose
LDC Revolving Loan Fund (RLF) loans are available to commercial and industrial borrowers located within the boundaries of the City of Charleston to help finance fixed assets and working capital. Fixed asset loans can be used for the acquisition and/or improvement of land, buildings, plant and equipment, including new construction or renovation of existing facilities, demolition and site preparation. Working capital loans can be used for the start-up of new businesses or the continued operations of existing businesses.
Business Eligibility
- The business must be located within the limits of the City of Charleston. If the business moves from the eligible area during the term of the loan, the loan will become due and payable.
- Borrowers are eligible for LDC RLF financing only when credit is not otherwise available in the form of private capital on terms and conditions which would permit completion and/or the successful operation or accomplishment of the project activities to be financed. The borrower must secure a letter of commitment from a commercial lender for a portion of the project or two letters of turn down for the project.
- For-profit retail, manufacturing, wholesale, and service businesses are eligible for assistance, except those involved in the following activities: gambling, speculative ventures, investment-oriented activities, religious activities, businesses engaged primarily in the sale of alcoholic beverages, or any other activities as may be set forth from time to time by the LDC.
- The business must meet the SBA’s definition of a small business.
- Eligible Project Costs: Proceeds of the loan may be used for the following needs of a small business: real estate, leasehold improvements, fixtures and furniture, machinery and equipment, working capital, inventory, gap financing, or collateral assistance for bank financing.
Terms and Conditions
- The loans will range from a minimum of $10,000 to a maximum of $75,000. However, if there is a request above $75,000 and the project is deemed to be beneficial to the goals of the LDC RLF, such a request will be presented to the Board for consideration.
- In general, loan terms will average three to five years for working capital, five to seven years for machinery/equipment and up to ten years on real estate.
- Interest rates will be set based on project viability and the borrower’s ability to repay.
- The project must create and/or save an average of one job for each $20,000 of LDC RLF funds loaned.
- The project must leverage private investment of at least $2.00 for every $1.00 of LDC RLF investment.
- The LDC will obtain sufficient and adequate collateral to secure the loan.
- All loans must be personally guaranteed.
The LDC is an Equal Opportunity Lender.
RETURN TO PROGRAMS OFFERED
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