The LTADD Revolving Loan Fund program has been established, through a Grant from the Economic Development Administration, in order to further job creation and investment in the Lincoln Trail region. The primary program objective is private sector job creation and expansion in industrial, commercial, service, and tourism ventures.
- RLF Abstract
- RLF Preliminary Loan Application
- RLF Full Application
- Program Process and Administrative Requirements
- Sample Bank Letter
Breckinridge, Grayson, Hardin, LaRue, Marion, Meade, Nelson, and Washington Counties.
Land, Buildings, Equipment, Working Capital.
No speculative activities, debt re-consolidation, or re-lending. Loan limit of $10,000 per job.
- Maximum Loan:
Not to exceed twenty-five (25) percent of project cost or $100,000.
- Maximum Term:
Fixed Assets – 15 years; Working Capital – 5 years.
Four (4) Percentage Points below the current U.S. Prime Interest Rate as quoted in the Wall Street Journal.
LTADD Revolving Loan Fund
Program Process and Administrative Requirements
The RLF Program consists of a two-step process, involving a pre-application and a full application. The process works in this order:
- An applicant submits the preliminary application to LTADD.
- The Pre-Application is reviewed by staff and compared to weighted, evaluation criteria.
- If the initial review is favorable, the applicant will be requested to submit a full application.
- The Lincoln Trail Area Development District Loan Review Committee will review the application
Additional program requirements include:
Prior to preparing any application forms, LTADD staff will request a meeting with the principals of the firm and their lender to discuss the project and possible RLF involvement.
There is a non-refundable application fee of $200-$350; it is a sliding scale based on loan amount. (It is not submitted with the pre-application). This is in addition to a 1% servicing fee payable at loan closing.
Please note the current loan terms and limitations on the overview.
If a full application is requested, financial documentation must be entered on appropriate forms or be in the same format.
Either the LTADD staff or the Loan Review Committee may request additional information at any time during the process.
Applicants must understand that if a pre-application meets or exceeds the evaluation criteria, this in no way constitutes initial approval of any subsequent full loan application. It simply means that the project meets RLF criteria.
The LTADD is a subordinate lender in the majority of projects. Personal Guarantees are required of any principal with ownership of 20% or more of a firm.
For working capital loans, applicants should have existing net working capital of at least twenty percent (20%) of its total working capital needs.