Intermediary re-lending program available to Union County businesses
An intermediary re-lending program is available to Union County businesses. The program is designed to help businesses with growth and development.
The availability of the program was discussed at last week’s regular meeting of the Union County Board of Commissioners.
The meeting was Friday morning, Jan. 24, at the Union County Courthouse in Jonesboro.
Union County Board of Commissioners vice chair Bobby Toler Jr. presented information about the re-lending program at the meeting.
The program is available from the Southern Five Regional Planning District and Development Commission. Toler is the county board’s representative to Southern Five.
The following information about the program was shared at the county board meeting:
Loans cannot exceed $150,000. Loans cannot exceed 75 percent of a project’s total cost.
Loans cannot be use for agricultural, housing or refinancing purposes.
Land/buildings can be financed for 15 to 20 years. Machinery/equipment can be financed for the useful life of equipment.
Working capital can be financed for five to seven years. Collateral must be valued at equal or greater than loan amount.
Interest is at a fixed rate between 4.5 percent and 6 percent. The borrower is required to purchase life insurance on the amount of the loan designating the Southern Five intermediary re-lending program as the beneficiary.
Program preferences include:
Jobs created and/or retained. Percentage of total project financed with program funds (the lower the better).
Creating opportunities for training and advancement. Jobs targeted to low and moderate income individuals.
Costs for the program include:
An application fee of $100, which is submitted with the application.
A closing fee of $500, paid at closing or can be financed as part of the loan.
Applicant pays all other closing costs: recording fees, legal fees, appraisals and others.
The process for the program includes:
Application is received with $100 application fee.
Application is presented to the program’s loan review committee.
Applicant is notified in writing within 10 business days of the committee’s decision.
Southern Five begins loan processing (including environmental clearance, RD approval, document preparation). The process takes approximately 45 days.
Loan documents are executed and proceeds are distributed.
Information about the program is available by contacting Brittany Taylor at the Southern Five office in Ullin, phone 618-845-9000.