REDEC Short-Term Loan Program

REDEC & REDEC Relending Corporation Short-Term Financing Loan Programs

The REDEC Relending Corporation Short-Term Financing program is intended to provide financing for existing businesses who demonstrate a need for funds to fill specific contracts, orders, or need short term working capital.

Loan Policies and Eligibility Criteria Effective January 2004

Eligible Applicants:

For-profit existing businesses located in Chemung, Schuyler and Steuben Counties. Preference will be given to manufacturing and industrial projects.

Ineligible Applicants:

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

Eligible Activities:

Financing will be provided for existing businesses only, that demonstrate a need for funds to fill specific contracts/orders, or need short-term working capital.

Ineligible Activities:

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

Maximum/Minimum Loan Size:

For manufacturing and industrial businesses, RRC will finance up to 80% of a specific contract or order, up to a maximum of $15,000. For retail or service businesses, RRC will finance up to 75% of its working capital needs, up to a maximum of $7,500.

Interest Rate:

Currently 6.5% fixed.

Loan Terms:

Short-term financing of 12 months or less. Repayment terms within the 12 months will have the ability to be flexible and may be structured to coincide with the seasonality of the business.

Job Impact:

Minimum of one full-time (37.5 hrs.) equivalent employee must be created or retained for every $15,000 loaned.

Relocation:

Out of Labor market area prohibited.

Fees:

$150 non-refundable loan application fee. .5% service fee and loan closing costs.

Payment Schedule:

Payments will be due on the first day of the month. Repayment terms will be flexible with a payment schedule based on each individual clients needs.

Environmental Audit:

All applicants must demonstrate compliance with local, state and Federal environmental regulations. Loan applicants must complete USDA Form FmHA 1940-20 "Request for Environmental Information."

All loans must comply with the requirements of Federal and State laws concerning civil rights, the environment, flood protection insurance and access for the physically handicapped.

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