Revolving Loan Fund

The purpose of the economic development-revolving loan is to assist consumers in the expansion or start-up of small businesses served by Roughrider Electric.

The Zero Interest Loan must be used exclusively to promote rural economic development and/or job creation.

Committee Members:

• Roughrider Staff and select local business leaders.

Eligible Applicants:

• All Communities & Residents
• No Regard to Service Territory

Application Procedure:

• Application Monthly Deadline the 15th
• Presentation at Board Meeting
• Will notify applicant within five working days of Board Decision

Eligible Projects:

• Primary Sector
• Tourism
• Retail Business
• Community Facilities
• Agriculture Processing & Irrigation

Eligible Use Of Funds:

• Interim or Permanent Financing
• Building Construction or Renovations
• Real Estate
• Machinery & Equipment
• Working Capital  
• NOT USEABLE FOR REFINANCING

Minimum Loan Size:

• $5,000

Minimum Equity:

• 10%

Maximum Loan Size:

• Depends on revolving fund loan balance
• Cannot exceed 75% of total project capital requirements

Eligible Collateral:

• Accounts Receivable
• Inventory
• Equipment
• Federal Government Securities
• Letters of Credit
• Real Estate
• May Require Hazard and Life Insurance
• Can Subordinate Security Position

Length of Loan:

• Building & Real Estate 10 years
• Equipment 5-7 years
• Working Capital 1-3 years
• May Defer Principal Up To 2 years

Interest Rates:

• From 0 to Maximum Rate of Prime as Published in the Wall Street Journal

Return to Roughrider:

• 1% Loan Servicing Fee on the Outstanding Loan Principal on the First Day of Each Year on Each Loan.
• All Staff Members Will Need to Keep Track of Time Committed. If 1% Service Fee Does Not Cover Expenses,REC Can Charge Up To 10% for Operation Expenses.

Applicant Responsibility:

• Provide Year-End Balance Sheet
• Provide Income and Expense Statement

GM Reports to Board:

• All Loans Annually
• Problem Loans Quarterly