Revolving Loan Fund

Revolving Loan Fund

The purpose of the RLF is to provide credit enhancement to participating banks to facilitate the financing of business and industry in the 9 county region served by CADDA, resulting in a positive economic impact through the creation and/or retention of jobs.

  • RLF Counties:  Bryan, Bulloch, Camden, Chatham, Effingham, Glynn, Liberty, Long, McIntosh

Loan Structure (typical)
Bank:        45%
CADDA:  45%
Borrower: 10%

(The bank and CADDA have a shared 1st lien on the collateral)

Maximum/Minimum Loan Amount
The maximum loan amount is $500,000 (total loan request) and the minimum is $10,000 (total loan request).

The interest rate for the loan is determined by the bank. (CADDA may, in some instances have a lower rate, however, its floor is 4%.)

The term/amortization is determined by the useful life of the assets. One loan may be provided for all project assets using a “weighted average life”.

  • Land/Building (20 years)
  • Machinery/Equipment (up to 10 years)
  • Working Capital (up to 7 years)

Eligible Uses of Proceeds

  • Acquisition of land
  • Construction of new building
  • Renovation of existing structure
  • Leasehold improvements
  • Machinery & Equipment
  • Working Capital
  • Inventory

Types of Eligible Businesses

  • For-Profit
  • Owner must be a legal, U.S. resident

Job Creation
One permanent job should be created or retained per $20,000 of CADDA funds loaned. If fewer jobs are created/retained, the project must demonstrate a high positive impact acceptable to CADDA.

Benefits:  Improved Loan Quality-CADDA’s participation reduces the lender’s credit risk.

  • Reasonable Interest Rates & No Loan Fees-CADDA establishes the interest rate at a rate equal to or less than the bank’s interest rate. There are no fees for CADDA’s participation.
  • Longer Terms-CADDA’s participation may encourage longer repayment terms, which reduce the borrower’s debt service and improves operating cash flow.
  • New Customers-The RLF creates and/or retains jobs, which translates into additional customers for the private lender and new jobs for the community.
  • Low Down Payment-CADDA’s participation may reduce the down payments, thereby increasing working capital for the customer.
  • Quick Response-The loan can be closed and funded shortly after CADDA BOD approval.
  • No prepayment penalty– The borrower will pay no penalty for prepaying the loan on the CADDA portion.
  • Loan Servicing Assistance-CADDA’s staff also assists the bank in servicing the loan.

Can I Qualify