What is the Revolving Loan Fund (RLF)?
SPAG established the RLF program in 1987 with a $500,000 grant from the Economic Development Administration (EDA). Due to the excellent track record of SPAG, EDA funded an additional $500,000 grant in 1991. The EDA grants, combined with local matching dollars, give SPAG a total fund of just over $1,300,000 to loan to private businesses. Due to the closing of Reese Air Force Base, SPAG was awarded an additional $500,000 in 1997 which served to increase the RLF capital available to businesses in the region.
What are the requirements to use the RLF funds?
Businesses must be in the following counties: Bailey, Cochran, Crosby, Dickens, Garza, Floyd, Hale, Hockley, King, Lubbock, Motley, Terry, and Yoakum (click here to view a map of the eligible counties).
Money can only be used for working capital, consolidation of accounts payable, machinery and equipment, and building and land (existing loans cannot be refinanced).
Borrowers can only request 1/3 of their total project cost at a maximum of $250,000.
Term is tied to the useful life of assets pledged as collateral.
Rates are determined by the SPAG RLF loan Board depending on the strength of the project.
1 job must be created or retained for every $10,000 borrowed from SPAG RLF.