Rural Business Initiative (RBI) Loan Program

Recognizing that direct lending programs represent another tool with which to help implement regional business development objectives and foster the continuation of ongoing public and private partnerships within the rural five-county region, the Commission established the Rural Business Initiative (RBI) direct loan program in January of 1993. Like the agency's other direct loan programs, the RBI program has proven to be an invaluable means of leveraging substantial sums of private investment which in turn has created hundreds of local employment opportunities for the area's rural residents while building the tax revenue base of the region's local governments.

The Commission's RBI lending authority was made possible by three separate, long-term very low interest, fixed-rate federal loans totaling $3.2 million under the provisions of the Intermediary Relending Program which is administered by the Rural Development division of the USDA. Such federal funds are re-loaned to qualifying, credit worthy commercial and industrial businesses within the region by the Commission at a higher (but nevertheless attractive) fixed interest rate (i.e.,currently 5.5%) repayable over as long as a 15-year term.

RBI direct loan funds can be used by the borrower to support both fixed asset and inventory/working capital financing needs. This flexible direct loan program can provide up to 75% of the project's total cost (normally in cooperation with the borrower's equity and conventional bank financing) or $250,000 whichever is less.

The majority of the regional organization's RBI loans have been made for $100,000 or less and the Commission expects that one full time equivalent job will be created (within 24 months) for each $25,000 in RBI loan funds approved. The Commission expects not less than a prorated co-first lien position of the assets it helps finance along with the personal guarantee(s) of all major stockholders, partners or investors, etc. as security for its RBI loan.

Typical RBI repayment terms are as follows, but can be modified to some extent to meet the borrower's debt repayment capabilities:

• Inventory = 2/3 Years
• Working Capital = 2/3 Years
• Rolling Stock = 2/4 years
• Equipment = 3/7 Years
• Real Estate = 15 Year Maximum

Most RBI loans can be packaged by the Commission's staff in two to three weeks with the borrower's full cooperation, thereby permitting a credit decision within a total of four to five weeks. Within an additional two weeks, the RBI loan could be be ready for closing. A non-refundable packing/processing fee is charged by the Commission to cover its front-end costs of working with the applicant to prepare and review the RBI loan application.

For more detailed information, contact the Commission's Executive Director, Fred Walker at the phone number above or by e-mail at fwalker@scirpdc.com.

CDI Loan Program

Title IX Loan Program

	General Commission Information
	Local Planning Services
	Local Technical Assistance
	Grant Writing & Management Services
	Business Development Financing Programs
	Other Data Links

Con Span Bridge Introduced by Egyptian Concrete

Sample of Magnetic Advertising Product Produced by Magnet, Inc.