The Appalachian Regional Commission Revolving Loan Program
Financing Requirements
The program can provide up to 50% of the total project costs with a maximum loan amount of $100,000.00 to anyone borrower.
ARC RFL dollars must be matched by non-federal dollars in a ratio of one for one from private sources or non-federal public programs. Borrowers must contribute a minimum of 20% equity investment for each project funding.
The ARC loan program will require a personal guarantee from the borrowers/owners.
Documentation will be required to show that the project will create and/or retain one full-time job for each $2,500.00 of ARC RLF funding.
Eligible Categories of Business Financing
Funding may be used for the startup or expansion of businesses located within the seven-county area served by the Golden Triangle Planning and Development District, Inc. This loan program does not have a requirement that the business owner must be a resident of Mississippi.
Eligible Project Costs
Purchase and/or renovations of buildings, purchase of machinery and equipment, purchase of land, working capital.
Maximum Loan Terms
- Inventory - 3 years
- Land & Buildings - 15 years
- Machinery & Equipment - 7 years
- Working Capital - 3 years
Interest Rate
The minimum interest rate will be 4% below current U.S. Treasury rate for issues of similar size and maturity or the maximum allowed by State law, whichever is lower, but in no event may the interest rate be less than 4%.
Fees
The GTPDD will charge an origination fee of 1% of the loan amount provided by the Appalachian Regional Commission Revolving Loan Program.
Non-Eligible Costs
Speculation on any kind of property, debt consolidation, vehicle financing, relocation of business outside county, media and non-profit businesses are not eligible.