Revolving Loan Fund « Back to Search Results
Revolving Loan Fund

Category: Financing

The Phelps County Development Corporation has an $800,000 revolving loan fund. It is primarily used by existing businesses to grow or transition to a new owner, but it is also available for startups and businesses entering the Phelps County market.


Who qualifies?

Businesses that reside in Phelps County and are in one of the following industries: manufacturing, processing, research and development, interstate commerce, telecommunications, retail, and tourism.

Businesses in gaming, the exclusive sale of alcohol and/or tobacco, production agriculture, and petroleum production are not eligible for loans.


What type of financing is this?

The loans issued by PCDC are to be used as gap financing. The "gap" is defined as the difference between the cost of the project and the combination of money available from the owner and the bank.  

Project cost - Owner’s Equity - Bank Financing = Gap


How can the loan be used?

The proceeds may be used to:

  • Purchase Real Estate
  • Purchase Fixed Assets
  • Use as Working Capital
  • To Provide Job Training
  • Purchase an Existing Business


Application Process

  1. Start working with a traditional lender.
  2. Ask your lender for a preliminary assessment regarding the extent to which his/her bank might be able to finance the project. (Veteran lenders can determine fairly quickly if his/her financial institution is able to fully underwrite your project.)
  3. If the bank is unable to fund it all, now is a great time to pull PCDC’s staff into the conversation with you and your banker.


How long does it take for a loan to be approved?

Gap financing is a riskier type of lending so the due diligence is extensive. To minimize the number of individuals who have access to confidential information, a committee assesses the application, then makes a recommendation to an all-volunteer board. The simplest requests with solid cash flow and collateral can be processed in 30 days.


Get an application here.