Revolving Loan Program

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)

Application Process

Step 1: Contact for Pre-Application Materials
Contact Michael White at (850) 265-3631 to request pre-application materials

Step 2: Prepare Required Pre-Application Documentation

• Project description
• Project impact assessment
• Business feasibility analysis
• Preliminary market data and market strategy
• Preliminary financial feasibility
• Identify management team
• Preliminary timeline schedule
• Management track record (including resumes)
• Source and use of funds

Step 3: Submit Application
Submit completed application materials to Michael White at (850) 265-3631