REDEC Revolving Loan Program

REDEC Revolving Loan Fund

The REDEC, REDEC Relending Corporation Revolving Loan Program provides "gap financing" to start-up and existing businesses located in Chemung, Schuyler and Steuben Counties. All loan applicants must demonstrate both a need for REDEC or REDEC Relending Corporation financing and that the project will provide a positive job impact.

Eligible Applicants:

For-profit businesses located in Chemung, Schuyler, and Steuben Counties. Preference will be given to manufacturing and industrial projects where opportunities for employment are greatest; and tourism related businesses, which will increase the tax base.

Ineligible Applicants:

Officers, Board Members, Staff or Blood Relatives of any of the above representing REDEC for a period of one year following service.

Eligible Activities:*

Acquisition and/or improvement of land, building, plant and equipment; including new construction or renovation of existing facilities; demolition and site preparation; and working capital.

Ineligible Activities:

Speculative activities; purchase or finance equity in private business; debt consolidation or refinancing.

Maximum Loan Size:

50% of the total project cost, up to $100,000; whichever is less, based on the availability of funds. A borrower may not have more than $150,000 in REDEC/RRC loans outstanding at any one time. Retail/commercial/service type projects are limited to $50,000 or 35% of the total project cost; whichever is less.

Equity Requirement

Minimum of 5% cash equity injection required.

Interest Rate:**

Interest rate is determined at loan approval

Terms:***

3 - 7 years for working capital and equipment. 7 - 10 years for real estate activities.

Job Impact:

Minimum of one full time (37.5 hours) equivalent employee must be created for every $20,000 loaned.

Relocation:

Relocation Out-of-Labor market area prohibited.

Fees:

$250 non-refundable application fee. Two percent (2%) service fee; and loan closing costs.

Payment Schedule:

Payments are due on the first day of each month. Any payment not received on or before the 10th of the month will be assessed a late fee.

Code Compliance:

Required.

Environmental Audit

All applicants must demonstrate compliance with local, State and Federal Environmental regulations. Projects involving real estate must provide a current environmental audit.

Demonstration of Need:

All applicants must demonstrate a need for REDEC/RRC financing and provide supplemental evidence to document the need.

Acceptable documentation includes:

Bank commitment letter outlining terms and conditions and that loan is contingent upon REDEC/RRC financing; or
Bank denial letter with reasons provided for denial.

*Projects, which utilize federal dollars for construction and/or renovation, must comply with Davis Bacon (wage-rate) requirements.

**The interest rate, will in no event, go below 5%.

***Terms may be blended if funds are used for more than one purpose.

"REDEC ensures confidentiality of all applicants and does not discriminate against any applicant because of race, color, religion, sex, or national origin."