| MANAGED LOAN PROGRAMS |
REDC manages several loan programs for the City of Richmond and its Industrial Development Authority which targets small businesses and commercial property owners located in enterprise zones. These programs are as follows. |
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| Commercial Area Revitalization Effort (CARE) Loan Program: |
| The CARE loan program is designed to foster revitalization and rehabilitation of older commercial areas of the City of Richmond , to improve the business environment and stimulate economic activity in these areas. The program provides financing to property owners and/or tenants. |
- Maximum Loan: $50,000
- Minimum Loan: $2,500
- Interest Rate: Four percent (4%).
- Eligible Loans: Rehabilitation, renovation, and leasehold improvement financing on commercial and/or mixed use properties.
- Eligibility Requirements: Businesses and property must be located in designated CARE areas, and owners must have ten percent (10%) of total project cost.
- Maximum Term: Twenty-four to sixty months for leasehold improvement loans or remaining term of the lease. Rehabilitation loans shall not exceed the average useful life of improvements.
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| Advantech Incubator's Tenant Revolving Loan Fund: |
| The Industrial Development Authority of the City of Richmond created the Advantech Incubator's Tenant Revolving Loan Fund program to provide affordable financing to its tenants. |
- Maximum Loan: Up to $105,000
- Interest Rate: Four percent (4%).
- Commitment Fees: One percent (1%) of loan amount.
- Eligibility Requirements: Businesses and property must be located in the Maggie L.Walker Building and Technology Center located at 501 East Franklin Street in Richmond, Virginia.
- Loans Eligible: Working capital, equipment and expansion financing.
- Equity Requirement: Owners must have a ten percent (10%) equity investment in the business and the company must have a positive net worth.
- Maximum Term: Five (5) to ten (10) years, depending upon loan purpose and the average useful life of the asset or equipment being acquired with loans proceeds.
- Collateral: Assignment of business assets acquired with loan proceeds, along with other business and personal assets, as necessary; depending upon risk and repayment capacity.
- Guarantors: Personal guarantee of owner(s) is normally required.
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