• Economic Development 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.
|
