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Comprehensive RLF Application Process and File Maintenance Overview

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This document outlines the process for applying to the Region XII Revolving Loan Fund (RLF) program, including eligibility criteria, funding limits, and the formal application process. The RLF manages a capital base of $2.34 million, primarily funding up to 40% of total project costs with a maximum loan of $250,000. Key stakeholders in the outreach process include local economic development groups, banks, and government entities. The document also describes the responsibilities of the Loan Review Committee and requirements for annual compliance, such as job creation certification and financial reporting.

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Comprehensive RLF Application Process and File Maintenance Overview

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  1. RLF ApplicationProcess & File Maintenance IARC RLF Conference April 10, 2007 Joe Behrens, Local Assistance Director Region XII Council of Governments

  2. Region XII RLF Basics • 4-Funds, including EDA, RBEG, and IRP (2)-total capital base of $2.34 million • Covers Audubon, Carroll, Crawford, Greene, Guthrie, & Sac Counties • Program can fund up to 40% of total project cost, maximum loan of $250,000 • Target of 1 new job created for every $10,000 loaned

  3. RLF Program Outreach • County-wide and local economic development groups (primary) • Banks • City & County Governments • SBDC’s and Business Incubators

  4. RLF Program Outreach

  5. Preliminary Project Review (informal) • Initial contact with business (direct or through development official or lender) • Discussion on project details, including budget & financing needs • Preliminary review of project for RLF program goals • Comments to business

  6. Total Project Cost RLF Request Amount (not to exceed 40% of TPC) Private lender financing (min. 50% of TPC) Applicant cash/equity in (min. 10% of TPC) Job Creation (1 job for $10K loan request) Type of project (competition issues) Preliminary Project Review (informal)

  7. Formal Application Process • Applications due to Region XII by 25th of the month • Applications must include all information on application checklist and 1.5% application fee • Applications must be sponsored by economic development group • Reviewed by Loan Review Committee 2nd Wednesday of following month

  8. Region XII Loan Review Committee • 1-County economic development official from each county (6) • 1-Lender representative from each county (6) • 1-Attorney advisor (ex-officio) • Executive Director & Fiscal Officer of Region XII (ex-officio) • Total of 15 Members

  9. Formal Application Process • Application packets mailed out to loan review committee members • Applicants invited to attend Loan Review Committee meeting with lender and/or development official • Applicants give presentation, answer questions from committee members

  10. Formal Application Process

  11. Formal Application Process • Loan review committee discusses project, makes formal recommendation to Region XII Executive Board • Recommendation will include which fund loan will be made from (EDA, RBEG, IRP, or IRP2), interest rate, terms, collateral, etc. • Recommendation is presented to Executive Board

  12. Formal Application Process • Executive Board makes final decision on application • If loan is approved, offer is sent to applicant including terms of loan • Offer must be signed by applicant and returned • Loan closing process begins

  13. Loan Closing Process • USDA Approval process, including environmental review (if initial IRP funding) • Loan Security Documentation (loan agreement, promissory note, mortgage, UCC, etc.) • Loan disbursement (can be total loan amount or smaller disbursements) • Payment schedule

  14. Loan Files • Loan Application File (includes application materials, employment data, insurance info, financials, etc.)

  15. Loan Files • Loan Security File (includes original signed and filed loan documents)

  16. Internal File Maintenance • Loan entered into LoanLedger software • ACH payments set up with bank • Recording of necessary loan documents (mortgage, UCC, auto lien, etc.) • Contact with insurance company to get loss payee information added • Establishment of contact to obtain job creation and financial information

  17. Annual Requirements • Job creation (annual certification) • Financials (end of year tax returns and/or audited financials & balance sheets) • Site Visits • Insurance Certificates

  18. Job Creation Documentation

  19. Questions? Contact: Joe Behrens, Local Assistance Director Region XII Council of Governments (712) 792-9914 jbehrens@region12cog.org

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