Rural Business Enterprise Loan Fund

Program Objective

Rural Business Enterprise funds will be used to serve as a source of financing for small and medium size businesses, with emphasis toward the minorities headed by a female CEO. The establishment of new businesses, the expansion and retention of existing businesses and the creation of jobs will be the primary objective.

 

Eligibility Requirements

1.  Recipients may be individuals, public or private organizations, or other legal entities, with authority to incur the debt and carry out the purpose of the loan.

2.  To be eligible to receive loans from the RBE loan fund,

  • Must be citizens of the United States or reside in the United States after being legally admitted for permanent residence. In the case of an organization, at least 51 percent of the outstanding membership or ownership must be either citizens of the United States or residents of the United States after being legally admitted for permanent residence.
  • Must be located in a rural area of the state.
  • Must be unable to finance the proposed project from its own resources or through commercial credit or other Federal, State, or local programs at reasonable rates and terms.
  • Must, along with its principal officers (including their immediate family) hold no legal or financial interest or influence in the GVEDC. Also, the GVEDC and its principal officers (including immediate family) must hold no legal or financial interest or influence in the recipient.

3.  Any delinquent debt to the Federal Government, by the recipient or any of its principals, shall cause the proposed recipient to be ineligible to receive a loan from Agency RBE loan funds. Agency RBE loan funds may not be used to satisfy the delinquency.

 

Loan Purposes

1.  Acquisition and development of land

2.  Construction and conversions of buildings and related infrastructure.

3.  Manufacturing, machinery and equipment

4.  Loans for start up operating cost and working capital.

5.  Technical assistance

6.  Professional services

7.  And other projects that meet the intended goals of Rural Business Enterprise Programs and the Greenbrier Valley Economic Development Corporation goals.

 

Program Procedures

1.  Interested borrowers request a loan application package from the Greenbrier Valley Economic Development Corporation. Every effort should be made to have a pre-application meeting with the GVEDC staff. The purpose of this meeting is to review the proposed project and discuss its eligibility requirements.

2.  A complete application package must be submitted to the GVEDC with a $30 non-refundable processing fee. If the application package is complete, staff will assemble the loan package for administration loan committee approval/denial. Incomplete or additional information request packages will be returned to the loan applicant for further changes and can be resubmitted with the proper changes.

3.  Loan closing costs will be two percent (2%). Special assessments above 2% cost will be made for approvals, special and expert analysis or other unusual cost.

4.  If approved, the loan agreement is executed with the applicant. All closing costs, including such legal services as may be required by the GVEDC, are to be paid by the borrower. NOTE: Projects cannot begin prior to the closing.

5.  The loan fund disbursement’s will be made as needed.

6.  The project must be completed in accordance with its agreed upon terms.

7.  Collateral must be sufficient for the loan and must be maintained for the term of the loan.

 

Loan Characteristics

1.  No loan will exceed $50,000. Each individual loan amount and term will be contingent upon the type of loan, the applicant’s ability to repay and the acceptability of the business plan.

2.  Interest rate will be fixed at Prime plus one percent (1%) on the day of closing.

3.  The first loan payment is due 30 date after closing. The Greenbrier Valley Economic Development Corporation will service all loans.

 

Loan Delinquency

1.  Loan payment not received within ten (10) days of the due date will create a review/site visit by the agency staff and reply from the borrower. A late fee of $10.00 will be charged after 10 days.

2.  Loan payment overdue in excess of ninety (90) days will be considered for foreclosure.

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