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The Cumberland Plateau Planning District Commission administers a Revolving Loan Fund (RLF) for Buchanan, Dickenson, Russell, Tazewell, Lee, Scott and Wise Counties and the City of Norton.

All loan applications are reviewed by the RLF Committee, which in turn makes loan recommendations to the Cumberland Plateau PDC Board of Directors for final approval.

In order to assist business expansion and new job creation, the RLF administrator can take subordinated liens in order to enhance financing from conventional sources. RLF monies are also available to public entities, but preferably for not more than 20 percent of the total loan fund portfolio.

Loan Limits
Maximum $250,000
Minimum $25,000

Maximum Repayment Period
10 years

Interest Rate
75 percent of prime as listed in the Wall Street Journal, or 4 percent, whichever is less

Eligible Costs

• Land Costs: engineering, legal, grading, testing, site mapping and related costs
• associated with acquisition, plan and site preparation.
• Building Costs: real estate, engineering, architectural, legal and related costs
• associated with construction and rehabilitation of buildings.
• Machinery and Equipment Costs
• Working Capital Loans: Limited to 50 percent of total loan portfolio. (Personal guarantees are required)
  
• Adequate Contingency Reserves.

Application Requirements

• Applicant must provide a minimum of 15 percent equity of the total project cost.
• Collateral: Liens on fixed assets (may be subordinated). Personal guarantees may be required.
• Loan Limits Per Project: Up to 33 percent of total project cost.
• Loan Administration Fee: one percent of loan. (May be waived.)
• Job Cost Ratio: Minimum $20,000, maximum $35,000 loaned per job created.
• Private Sector Leverage: $2 in private financing for every $1 in RLF financing.
• Letter from a conventional lender stating credit is not otherwise available at 100 percent of the project cost.
• Business plan must be provided.