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Rural Washington Loan Fund Project Qualifications
The Washington State Rural Washington Loan Fund (RWLF) provides
gap financing to businesses which will create new jobs or retain
existing jobs, particularly for lower-income persons in rural counties.
“Gap” is defined as that portion of a project which cannot be financed
through other sources, but which is the last portion needed before
the overall investment can occur. Priority is given to timber-dependent
and distressed area projects.
Priority Projects
- Manufacturing or other industrial production
- Agricultural development or food processing
- Aquaculture development or seafood processing
- Development or improved utilization of natural resources
- Tourism facilities
- Transportation or freight facilities
- Other activities which represent new technology or a type
of economic enterprise needed to diversify the economic base of
an area
- Retail or service enterprises that will expand the community's
economic base rather than primarily redistribute the existing
customer base.
Ineligible Projects
- RWLF will not finance a business with a negative net worth
or when funds would be used for the reduction of an existing
lender's risk position or to replace owner's equity.
- Under statute, the program may not finance projects which
directly or indirectly assist in the development of a shopping
mall.
Funds Available
- Loan amount is determined by the “gap” and competitive factors,
and cannot exceed one-third of the total project costs.
- Loans up to $700,000 with Director's approval.
- Funds can be lent for the acquisition, engineering,
improvement, rehabilitation, construction, operation, or
maintenance of any property, real or personal, that is used
or is suitable for use by an economic enterprise. Working
capital term loans are eligible costs.
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