Revolving Loan Program

Revolving Loan Program

Funder: Gulf Coast Electric Cooperative (GCEC)

Purpose: A local pool of capital to promote rural economic development. The fund provides gap financing for start-up, expanding, and new businesses that attract new jobs or provide needed public health or social services.

Geographic Scope: Service area of Gulf Coast Electric Cooperative in Florida (Wewahitchka, Panama City, Southport areas)

Key Features:

As borrowers repay their RLF loans, the principal and interest is returned to the fund to be loaned to other businesses

Only financially strong businesses with detailed business plans are encouraged to apply

Strong economic impact on the community is required

Eligible Businesses

• Corporations, partnerships, sole proprietorships, and cooperatives
• Local governments or public entities
• Non-profit entities
• Tribal authorities

Eligible Projects

• Industrial or commercial development
• Small business expansion
• Business incubators
• Community infrastructure or facilities (should provide permanent jobs in rural area)
• Medical facilities (should provide permanent jobs in rural area)
• Training or educational facilities (should provide permanent jobs in rural area)

Eligible Activities

• Acquisition or construction of commercial and industrial buildings and structures
• Purchase of capitalized machinery and equipment with a useful life of 5 years or more
• Acquisition of real property for economic development
• Rehabilitation of deteriorated retail, commercial, and industrial buildings

Ineligible Purposes

• Refinancing existing debt or payments to business owners or partners
• Activities for investment purposes not directly related to job creation
• General improvement loans for normal replacement needs of business unrelated to job creation
• Agriculture production costs (cultivation, production, harvesting)
• Vehicles for general purposes or personal use
• Projects without supplemental financing
• Working capital with limited security
• Residential construction projects
• Illegal activities and/or legalized activities (e.g., gambling casinos) that adversely affect RLF interests
• Projects in which any director, officer, general manager, supervisor or employee of GCEC, or close relative would create a conflict of interest
• Projects in which recipient would be required to purchase or lease property, materials, equipment, or services from GCEC or affiliates
• Projects that pay salaries of GCEC employees or affiliates

Loan Guidelines

• Maximum Loan: $100,000
• Minimum Loan: $10,000
• Application Fee: $100
• Job Creation Rate: 1 job per $10,000 loaned
• Maximum Term: 10 years
• Interest Rate: Fixed (attractive rate of prime or below)

Contact Information

Michael White Phone: (850) 265-3631