A Region Connected

Serving Buchanan, Dickenson, Russell, and Tazewell Counties in Virginia
Cumberland Plateau Planning District Commission
Serving Buchanan, Dickenson, Russell, and Tazewell Counties in Virginia
Cumberland Plateau Planning District Commission

          The Revolving Loan Program, funded by the Economic Development Administration, provides a source of economic development financing and enhances the ability of local governments to deal quickly with bona fide industrial prospects. This funding source may be used with other existing local, state and federal programs to develop financial proposals for new and existing industries.

Loan Limits
Maximum $250,000
Minimum $25,000

Maximum Repayment Period
10 years

Standard Interest Rate

          The minimum interest CPPDC may charge is four (4) percentate points below the lesser of the current money center prime interest rate quoted in the Wall Street Journal, or the maximum interest rate allowed under State Law. In no event shall the interest rate be less than the lower of four (4) percent or 75 percent of the prime interest rate listed in the Wall Street Journal.

          The Cumberland Plateau Planning District Commission's Revolving Loan Fund (RLF) was created with monies from the Economic Development Administration in 1986. EDA increased the loan fund in 1991 and expanded the eligible service area to include the Lenowisco PDC. The Commission administers the program with the objective of helping to create new manufacturing jobs in its four member counties: Buchanan, Dickenson, Russell and Tazewell as well as Lee, Scott and Wise counties and the City of Norton. Loans cannot be made for office buildings, restaurants, apartments, recreational facilities, etc.

          In order to assist plant expansion and new job creation, the RLF administrator can take subordinated liens in order to enhance financing from conventional sources. RLF monies are also available to public entities, but preferably for not more than 20 percent of the total loan fund portfolio.

          All loan applications are reviewed by the Cumberland Plateau RLF Committee, which in turn makes loan recommendations to the Cumberland Plateau PDC Board of Direcgtors for final approval.


Eligible Costs:

> Land Costs: engineering, legal, grading, testing, site mapping and related costs associated with acquisition, plan and site preparation.
> Building Costs: real estate, engineering, architectural, legal and related costs associated with  construction and rehabilitation of buildings.
> Machinery and Equipment Costs
> Sales and Use Taxes and interest on interim finance construction and other costs contributing directly to the value of project fixed assets.
> Working Capital Loans: Limited to 50 percent of total loan portfolio.
> Adequate Contingency Reserves.

Application Requirements:

> Applicant must provide a minimum of 15 percent equity of the total project cost.
> Collateral: liens on fixed assets
> Loan Limits Per Project: 33 percent of total project cost.
> Loan Administration Fee: one percent of loan.
> Job Cost Ration: $7,500-$10,00 per job created.
 
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