..:: REDC Community Capital Group, Inc. ::..

PROPRIETARY LOAN PROGRAMS

Microenterprise Development Loan Program:

In 1998 REDC obtained its license as a financial intermediary of the U.S. Small Business Administration (SBA) which enabled the establishment of the Microenterprise Loan Program. As a licensed financial intermediary, REDC is able to provide financing to small businesses unable to obtain traditional bank financing.

Maximum Loan: $35,000
Interest Rate & Fees: Competitive interest rates are available, and a $100.00 administrative fee is charged at closing and annually thereafter, to cover the delivery of technical assistance services provided to loan clients.
Eligible Businesses: For profit small businesses and non-profit child care providers.
Business Location: Richmond/Petersburg MSA .
Eligible Purposes: Start up financing, seasonal or permanent working capital, equipment purchases and minor leasehold improvements.
Ineligible Purposes: Repayment of existing indebtedness (unless combined with eligible purpose), non-profit organizations (except non-profit child care providers), and businesses with greater than $105,000 in existing indebtedness.
Other Requirements: Owners must have five (5%) to ten percent (10%) equity investment in the business and/or in the asset(s) acquired with loan proceeds. Existing businesses must have a positive net worth. All owners with twenty percent (20%) or more interest in the business must personally guarantee indebtedness. Loans will normally be secured with business assets or other personal assets as warranted.

504 Development Loan Program:

In 2006 REDC obtained its certification as a 504 Certified Development Company. As a 504 CDC, REDC in partnership with financial institutions will be able to provide long-term, fixed-rate financing to small businesses for acquiring commercial real estate, machinery and equipment through its 504 Development Loan Program.

Maximum Loan: The maximum loan under the 504 development loan program could range as high as $4 million, when combined with a 50% private sector loan. Our maximum loan cannot exceed 40% of the project cost with the owner providing the remaining 10% in equity.
Interest Rate & Fees: Interest rates on 504 loans are pegged to an increment above the current market rate for five (5) year and ten (10) year U.S. Treasury issues. Maturities of ten (10) and twenty (20) years are available. Fees total approximately three (3) percent of the debenture and may be financed with the loan.
Eligible Businesses: Business, along with its affiliates, must be for profit and fall within the size standards set by the SBA.
Eligible Purposes: Purchase of land and improvements, constructing, modernizing, renovating or converting existing facilities, purchase of long-term machinery and equipment.
Business Location: Statewide.
Ineligible Purposes: Working capital or inventory, consolidating or repaying debt, or refinancing. Loans cannot be made to businesses engaged in speculation or investment.
Other Requirements: Personal guaranties of the principal owners are required. Project assets are typically used as collateral.

Business Enterprise Zone Loan (BEZL):

The BEZL program provides financing to small businesses located in the City's enterprise zones that are unable to qualify for traditional bank financing. The lead product under this program is an “owner-occupied” mortgage.

Maximum Loan: $250,000 (Up to $300,000 when combined with NIB loan).
Interest Rate & Fees: Competitive interest rates are available and based upon loan term and risk. A one percent (1%) to one and one-half percent (1.5%) fee is charged on all loans.
Eligible Businesses: For profit businesses that have been in operation for two or more years, and located in an eligible low income census tract or enterprise zone of the Richmond/Petersburg MSA.
Eligible Purposes: Acquisition and renovation of “owner occupied” commercial or mixed-use properties and purchase of machinery and equipment.
Ineligible Purposes: Loans for paying delinquent federal, state or local taxes. Purchase or rehab of residential or investment properties.
Other Requirements: Businesses must be reasonably profitable, have adequate historical or projected cash flow for debt service, and unable to qualify for traditional bank financing. All loans will require the creation and/or retention of jobs. Other qualifying terms and conditions may apply.

Neighborhoods In Bloom (NIB) Revolving Loan Fund:

The NIB revolving loan fund is designed to promote economic and community development through low interest rate loans to startup and existing small businesses that qualify. Businesses must be unable to obtain traditional bank financing.

Maximum Loan: $50,000
Interest Rate: Four percent (4%).
Eligible Purposes: Acquisition of commercial buildings, machinery and equipment; and working capital.
Maximum Term: Based upon the average useful life of the asset being acquired with loan proceeds, i.e., 20 years for real estate and 10 years for equipment.
Eligibility Requirements: Businesses must be located in one of the five NIB targeted areas of the City of Richmond, i.e., Brookland Park Boulevard , Jackson Ward, Hull Street, North 25 th Street and Highland Park and Carver.

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