The Economic Revolving Loan Fund

The City of Anderson, in cooperation with local banks, offers a low interest loan program for businesses located in Anderson. The Anderson Revolving Loan Fund offers loans of up to $100,000 at rates as low as four percentage points below the prime rate. Funds may be borrowed for up to 20 years, although loans are ballooned every two years for a reevaluation. Borrowers must create at least one job for every $10,000 borrowed from the revolving loan fund. The program requires that a participating bank lend at least 67 percent of the loan. Bank terms are negotiated under normal loan conditions and criteria. If the bank will consider the loan on its own merit, the revolving loan fund cannot help. If the bank determines that it will make the loan only with revolving loan fund assistance, it submits a request to the fund for up to 33 percent of the loan or $100,000, whichever is less. Typically, the revolving loan fund portion of the loan is subordinate to the bank portion of the loan. The Anderson Economic Development Revolving Loan Fund Board will review the request and either accept or reject the loan request. Revolving loan fund monies can be used for many purposes, including buildings, machinery and equipment, and/or working capital.