|
|
Coastal RLF
|
Coastal RTA
|
|
Program Purpose
|
Supplemental financing for expansion and start-up projects
of small businesses which will create jobs in areas effected
by the declines in fishing and timber industries
|
Low interest loans for purchase of technical assistance or
community development strategies
|
|
Source of Public Funds
|
Economic Development Administration (EDA)
|
Economic Development Administration (EDA)
|
| Use of Proceeds: |
Fixed Assets
Working Capital
Equipment
|
Payment for pre-development services to architects engineers
market consultants and other professionals
|
|
Borrower
|
Developer, owner/user or quasi-governmental unit (e.g. ports)
|
Developer, owner/user, city, county, or quasi-governmental
unit (e.g. ports)
|
|
Location Restriction
|
Yes—Coastal Counties
|
Yes—Coastal Counties
|
|
Type of Financial Assistance
|
Direct loan
|
Direct loan
|
|
Maximum Amount of
Public Loan per Project
|
$150,000
|
Private Borrower: $50,000
Public Borrower: $50,000
|
|
Maximum Percent of Project
Cost Eligible for Public Financing
|
33%
|
Private: 90%
Public: 100%
|
|
Practical Minimum Amount
of Public Financing
|
$5,000
|
$5,000
|
|
Maximum Term of Loan:
|
Real Estate: 15 years
Machinery & Equipment: Negotiable
Working Capital: 3 to 5 years
|
Private Borrower: 1 to 5 years
Public Borrower: 8 years
|
|
Public Funds Interest Rate
|
Fixed
|
Private Borrower: Fixed
Public Borrower: Interest-free 3years; sliding scale thereafter
|
|
Typical Equity —
% of Project Costs
|
10% to 20%
|
Private: 10%
Public: 0%
|
|
Job Criteria
|
One job created per $10,000 to $15,000 of federal participation
|
Proposals and strategies must show potential for job creation
|
|
Loan Decision Authority
|
Local Loan Board
|
Local Loan Board
|
