SEDF Business Loans

The SEDF Business Revolving Loan Fund provides affordable financial assistance to individuals and businesses that lack the initial capital required to expand or start a business.  It is the goal of SEDF to assist with job creation and retention in the region. SEDF works in conjunction with other lending institutions to complete funding packages and reduce the amount of risk associated with small business lending.

Loan Uses

Asset to be financed:

Amortization schedule:

Land

20 years

Buildings

20 years

Permanent Fixtures

20 years

Working Capital

7 years

Inventory

5 years

Equipment/Machinery

15 years (or the life of the equipment, whichever is less).

7 years (for Solid Waste Loans to recycling and garbage hauling businesses)

 

Lending Parameters

Minimum loan amount: 

$20,000

Maximum loan amount: 

$150,000

Loan Balloon:

5 years

7 years (for Solid Waste Loans to recycling and garbage hauling businesses)

Origination Fee:

1.5% of the SEDF loan amount

Lending partner (bank, other financing):

Required

Collateral positioning:

Loans must be made on a parity basis

Interest rate:

Fixed for the life of the loan; 4.75% to 8% depending on the risk and location of the project; 2.25% for Solid Waste Loans to recycling and garbage hauling businesses

 

Primary consideration given to projects that:

  • For-profit organizations
  • Located within SEDF's service area
  • Provides opportunities the unemployed, underemployed, minorities, low-income, and socially or economically disadvantaged, among others
  • Credit is not otherwise available on ample terms to complete the project
  • Owner's equity investment committed to the proposed project must be adequate
  • Amount of private participation involved with the project meets SEDF's requirements
  • Would not be able to proceed without the assistance of the SEDF loan

In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, age, disability, religion, sex, and familial status.  (Not all prohibited bases apply to all programs).
To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-5964 (TDD)

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This institution is an equal opportunity provider, and employer.

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