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A Source of Capital - Assisting
Expanding Businesses within El Paso County
The El Paso County Revolving Loan Fund (RLF) is
a federally-funded loan pool created by the US Department
of Housing and Urban Development (HUD). The
funds, Community Development Block Grant (CDBG)
monies, are provided by the State of Colorado and
administered locally. El Paso County, through
its Office of Economic Development, contracts with
the Pikes Peak Regional Development Corporation
to administer the program for the County.
Goals The primary goals of the RLF are to create
and retain jobs and to expand and diversify the economic
base of El Paso County. Highest priority will
be given to manufacturing operations that create new
investment in El Paso County. To ensure job
creation and retention, the business receiving the
loan will be required to create or retain at least
one job for every $20,000 in RLF assistance. At
least sixty percent (60%) of new jobs created must
be filled by employees who, upon hiring, have a family
income below El Paso County's moderate income limits
provided by HUD (family income may exceed the County's
moderate income limits after hiring).
Eligibility The RLF monies are available to private, for-profit
businesses within unincorporated El Paso County and
its incorporated cities and towns. The City
of Colorado Springs maintains a separate loan pool;
therefore, businesses within the city limits of Colorado
Springs are only eligible for monies from the City's
pool. Contact the Small Business Development Center
at (719) 272-7232 for more information.
Funds The RLF is primarily for financing fixed
assets, including land, buildings, machinery, and
equipment. Working capital and inventory are
also eligible uses of loan funds. Minimum and
maximum dollar amounts available for each loan are
$10,000 and $100,000, respectively. Priority will
be given to projects that exhibit the greatest public
benefit. Generally, the RLF assistance may not
exceed forty percent (40%) of the total project cost,
and the borrower's equity contribution will be at
least ten percent (10%) of the total project cost.
A typical loan funded through the RLF will leverage
additional investment for a project.
Terms With the RLF program, loan terms are flexible
and are determined on a case-by-case basis depending
on the life of the asset being financed. Real
estate loans will usually have a term ranging from
seven to ten years; capital equipment loan terms usually
range from three to five years; and working capital
loan terms usually range from one to three years.
All loans are fully collateralized and personal
guarantees are required of all borrowers. Interest
rates will be fixed at a rate that is below market
rates at the time of closing.
For
More Information Please contact the Pikes
Peak Regional Development Corporation (PPRDC)
with any questions or to begin your application process
for RLF assistance.
- PPRDC
- 228 N. Cascade Ave.
- Suite 208 Colorado Springs, CO 80903
- (719) 471-2044
- (719) 471-2042 fax
- Website: http://pprdc.com
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