RUTLAND—Rutland Economic Development Corporation (REDC) announced Tuesday, May 5, that it has received authorization to offer an emergency loan program through its Revolving Loan Fund to assist businesses that are impacted by Covid-19. USDA Rural Development has authorized REDC to use $150,000 from its Revolving Loan Fund for the Covid-19 emergency loan program.
Businesses and organizations can apply for these loans to cover expenses and operating costs during this time. Highlights of the Emergency Loan Program include a 4.25% fixed interest rate for a maximum of five years with deferred payments for the first three months, the expedited delivery of funds, and no penalties for pre-payment for businesses looking to use this funding source as gap financing or until other funds are available. The minimum lending limit is $5,000 and the maximum lending limit is $50,000. Applications can be found online at rutlandeconomy.com/COVID19.
REDC encourages prospective applicants to consider how additional debt could impact their businesses and to reach out to REDC for guidance before beginning the loan process. Applicants should also be aware of how Emergency Loan funding could impact an EIDL or PPP award.
“We want to thank our partners at USDA Rural Development for helping us provide this resource to Rutland County businesses,” said REDC Executive Director Tyler Richardson. “We are committed to helping area businesses work through the challenges created by Covid-19.”
Through the its Intermediary Relending Program, USDA Rural Development provides low-interest loans to local intermediaries that re-lend to businesses to improve economic conditions and create jobs in rural communities. Developed in 1992, REDC’s Revolving Loan Fund was established to provide financial assistance to actively support promising businesses and job creation across Rutland County. Through the Revolving Loan Fund, which has approximately $650,000 available to lend, REDC provides businesses with fixed-rate loans between $5,000 and $150,000. As loans are repaid, they are invested in the form of new loans to other businesses. Funds are available for both existing and start-up businesses and support many initiatives, from working capital to installing new machinery to purchasing property. REDC works extensively with local lenders, often serving to help meet the unmet funding needs of a business that is unable to obtain adequate sources of traditional financing.