CEDC Regional Revolving Loan Fund Q&A
Q. What is the Centralina Economic Development Commission (CEDC)?
A. The CEDC was established in 2005 by Centralina Council of Governments (CCOG) to promote the retention of jobs; a diversified economic base; development, expansion and retention of business and industry, and growth within CCOG’s nine-county region. The CEDC brings together the private and public sectors in partnership to provide a coordinated strategy and ongoing economic development. With financial assistance from the U.S. Economic Development Administration (EDA), the CEDC brings together these diverse sectors into a comprehensive economic development and planning process, otherwise known as a Comprehensive Economic Development Strategy (CEDS).
Q. What is the CEDC Regional Revolving Loan Fund (CRRLF) and why was it created?
A. The CRRLF was created in May 2011 through a grant from U.S. Economic Development Administration. The CEDC in partnership with CCOG applied for Revolving Loan Fund program and received the federal award in April 2011. The CRRLF will provide gap financing to small businesses that are unable to obtain financing at reasonable rates and terms. CCOG and the CEDC will work in partnership with private lenders to make loans that banks might not ordinarily make on their own.
Q. How big is the loan fund?
A. The total fund is $1,000,000, with $800,000 received from the U.S. Economic Development Administration and matching funds of $200,000 received from a competitive grant from the North Carolina Tobacco Trust Fund Commission.
Q. What are eligible uses for funding?
A. Applicants can use funding for the following activities:
Purchase of machinery and equipment.
Real estate purchase and/or improvement.
Receivables and inventory.
Research & Development: Value Added Agriculture.
Technology: Green & Energy.
Advanced Manufacturing: Aerospace, Automotive, Metal Composites, etc.
Q. Are there qualifications to be eligible for these loans?
Funding with reasonable terms and conditions must be unavailable from conventional lenders.
Applicants must have primary loan participation from a commercial lender.
Business must be located within the CCOG region, which includes the following nine counties: Anson, Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly and Union.
Creation/retention of one job per $10,000 of CRRLF funds loaned is required.
For every $1 of CRRLF funding, there must be at least $2 of private funds from private lenders and/or equity partners.
Applicants must be U.S. citizens or legally registered aliens.
Applicants must not have any delinquent debt with the federal government.
Q. How and when will loan recipients be selected?
A. Applications will be accepted from new or existing business owners in the CCOG nine county region on a first come/first served basis. Applications will be evaluated by a five-member CRRLF Loan Committee made up of CCOG and CEDC members and private lending industry experts.
Q. How can I apply for a loan or find out more information?
Mike Manis, Director
Community & Economic Development
Victoria Rittenhouse, Program Associate
Community & Economic Development
CRRLF Loan Officer
Related Counties: AllCounties
Related COG Areas: Community and Economic Development