Loans available for eligible businesses
By MELINDA WILLIAMS
The New River Valley Regional Commission offers loans of up to $25,000 to eligible businesses seeking flexible financing.
The Commission operates the New River Valley Revolving Loan Fund (NRVRLF), which is designed to assist businesses and entrepreneurs in projects that create or maintain local jobs. Funds can be used for construction and land acquisition of non-residential real estate; rental and site improvements of non-residential real estate; construction and rehabilitation costs of non-residential real estate; purchase of fixtures, equipment and machinery, and working capital.
• Business must be physically located in the New River Valley (Pulaski, Giles, Floyd and Montgomery and Radford City counties).
• Average net total income, after taxes, for the past two years must be less than $2 million.
• Sole proprietors, partnerships, corporations or lessee operators must apply for the loan.
• The business must have a net worth of less than $6 million and an average net total income, after taxes, for the last two years must be less than $2 million.
• The business must meet all eligibility requirements.
Loans under $10,000 bear interest at a rate of at least 2% for a term of five years or less. Loans of $10,000 to $25,000 carry an interest rate of at least 4% for terms of five to 10 years, and loans up to $25,000 for terms longer than 10 years can be amortized, but a lump sum payment will be due at the end of the 10-year period.
Other conditions prohibit NRVRLF funds from covering more than 90% of the project cost; and prohibit fixed asset loans from exceeding 10 years and working capital loans from exceeding five years.
The allocation committee reserves the right to negotiate loans based on the economic and community interest of the project.
To apply or for additional information, email [email protected] or call 639-9313.