Since it's inception in 2006, and with the allocation of oil revenue funds from the county, over a four year period, the revolving loan fund (RLF) has continued to gain momentum. The Richland County Commissioners demonstrated their commitment to the integrity of Richland Economic Development Corp (REDC) by pledging this money for the RLF. We are truly thankful for their investment, and we do not take the responsibility lightly.
The determination and vision of the Richland County Commissioners has paid off. Their trust in REDC and their investment to the RLF has directly resulted in 62 jobs. The payrolls of these businesses positively impact the economy sevenfold as those companies continue to flourish.
Some good deals never get done because financing cannot be obtained, and business owners lack the necessary resources to qualify for traditional sources of financing. That's the niche that REDC's RLF is attempting to fill. The RLF is being used to assist established and incoming businesses in Richland County. When applicants go to banks looking for a commercial loan, lending staff may recommend them for the REDC's RLF program in order to provide equity.
The objective of the $1 million RLF is to provide a financial tool for new or expanding development opportunities within Richland County. The RLF is designed to be a cooperative venture with local financial institutions. Any funds that are not committed to an approved loan are kept in certificates of deposit in local banks. These deposits earn interest and are utilized, as needed, to fund loan deals as approved.
The RLF funds are not grants (free money), and they will not be used in competition with the financial institutions. Neither will the RLF funds be loaned outright to businesses; nor to any entity that doesn't qualify to be approved by a commercial bank. The RLF committee will not fund the entire amount of any project, nor commit over half of the loan pool balance to any one entity. The RLF pool of money is not funding that is utilized by Richland Economic Development Corp for the annual operation of its organization. The RLF dollars are restricted to the activities and expenses of the RLF loans. REDC does earn allowances for administrative costs and interest fees only, on a quarterly basis.
There have been 9 RLF loans awarded to: The Lucky Buckle, Doorbust'n Portables & Septic Services, KFC, Candy Bouquet, Russell Wells, Miller's Garbage Service, Planet Hair, Downtown Bistro, and S & S Properties. Two loans have been paid off, and all other loans are current.
The national economy may dramatically fluctuate from year to year. However, here in Richland County, our area is still open for business. Loans are being made. Risks are being calculated, and chances are being taken daily. As the next wave of entrepreneurs considers making the decision of business ownership, they have an additional tool to compliment the financial institution's lending ability. Richland Economic Development Corp's Revolving Loan Fund is available as gap financing, so talk with your loan officer today to apply!
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