What are the advantages of a Revolving Loan Fund?

Attractive Interest Rates!

Interest rates on RLF loans are generally fixed at the prime rate and determined by the project needs.  By combining RLF and bank financing, the borrower can utilize an effective rate well below market rates.

 

Bank Participation!

The RLF was not established to compete with the banking community or to be a lender of last resort.  Instead, it was established to provide gap financing, or "fill the gap" between what the bank can reasonably lend on a project and what the business can provide in equity.  Also, by utilizing RLF dollars, banks can offer attractive financing packages that lower debt services.  The bank maintains 1st mortgage on 100% of the collateral.

 

The Southwest Georgia Regional Commission does the packageing and therefore there is little or no paperwork for the bank.

 

Local Control!

The RLF Program is a local economic development initiative.  All decisions are made locally by SOWEGA Economic Development Corporation which is a representiative of the regional community.  The local emphasis means faster responses to loan requests and a minimum of "red tape" for you and your customer.  However, state and federal regulations do apply.

 

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