Revolving Loan Fund & Financing
Over $300,000 is made available to new and expanding businesses through the Tripp County Revolving Loan Fund.
To further the economic development of Tripp County by assisting in the growth and development of new business and industry.
- Provide capital for the expansion of business and industry
- Create additional job opportunities for Tripp County residents
- Reduce private lender risk on business loans
- Leverage other private and public funds for business and industry development
- Improve the infrastructure needed to attract and retain business and industry
Loan Selection Criteria
- Must be located in Tripp County
- Business must be for-profit
- Must involve the expansion of an existing business or the creation of a new business
- When two projects are reviewed simultaneously, the project which will benefit the county the most will receive highest priority.
- Applicant must provide 10% equity in the project
- Applicant must be able to obtain conventional financing for at least 50% of the project’s total cost
- Loan term will be limited to ten years
- Interest rate on loans shall be no less than 3%
- A credit check will be made on the business, owner or both
- Information will be required on the applicant’s past history
- A projected financial statement will be required in the loan application
- No applicant can be denied a loan on the basis of race, color, national origin, religion, age, handicap or sex
- Minimum and maximum loan amounts will be determined by the Revolving Loan Fund Review Board.
- General guideline is $5000 per job created
- The maximum loan will be the lesser of 38% of the project of $10,000 per job created
- Repayment terms will be individually negotiated with each borrower
- Interest rates on all loans will be no less than 3%
- Term will not exceed ten years
- RLF will take a subordinate position to private lenders. RLF loans will be secured by all available assets.
- Borrower will be required to maintain adequate insurance coverage.
- Loan applicants will be required to provide documentation on the use of loan proceeds prior to the closing of any loan.
- Personal guarantees will be required from all borrowers.
- Interest earned on RLF loans will be used to supplement the fund.
- Loans are nonassignable.