In order to promote economic development and self-sufficiency through the promotion of business start-up, growth, and expansion in rural areas, the Charleston Citywide Local Development Corporation has developed the Rural Revolving Loan Fund (Rural RLF). This program, designed to provide capital to businesses which cannot otherwise access capital, places special emphasis on funding businesses located in rural areas of Berkeley, Charleston, Colleton and Dorchester Counties.
- The business must be located in or be locating to the rural areas of Berkeley, Charleston, Colleton and Dorchester Counties. Eligible areas are defined as those outside of cities with a population of 50,000 or more and their adjacent boundaries. If the business moves from the eligible area during the term of the loan, the loan will become due and payable.
- Business owners eligible for traditional bank financing are not eligible for the Rural RLF. However, the program can be used in conjunction with bank and other appropriate LDC financing to fill gaps, which may exist in the total financing package.
- 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
- Maximum loan amount - $50,000.00. 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.
- Term - maximum of 10 years.
- Interest rates will be set based on project viability and the borrower’s ability to repay.
- 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.
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