Incentive Highlight: How the Revolving Loan Program Works for Small Business Owners

Small businesses are a critical part of the economy in Alamo, and the Alamo EDC works closely with those businesses to ensure their success. The EDC helps to cultivate an economically-healthy environment that encourages businesses to succeed while supporting the creation of jobs. The Alamo EDC assists and supports businesses through two main programs: the Revolving Loan Program and the Micro-Loan Program. In this piece, we’ll be focusing on the Revolving Loan Program.

What it Is

The Revolving Loan Program offers small businesses with a low-interest financing option and consists of:

  • A collateral-based loan ranging between $10,000 and $150,000.
  • An interest rate range of 4% and 10%.
  • A length of up to 10 years.
  • The option to be used as working capital or for repairs/renovations.

How Can My Small Business Qualify?

In order to qualify for this program:

  • The business must be located within Alamo’s city limits.
  • The business must be owned by a U.S. citizen or resident alien.
  • The owner must contribute 25% of the total project cost.

What’s Needed to Qualify?

After a business meets the loan’s qualifications, the EDC will request the following:

  • A business plan and reason for the loan.
  • A project budget if the loan is to be used for repairs and renovations.
  • A list of all owners or board members that hold at least 20% ownership of the company.
  • Business and personal income tax returns that cover the previous two years.
  • A profit or loss statement for the previous quarter.
  • A yearly balance sheet.
  • Three years of financial projections.

What Comes Next?

After receiving all requested documents, the EDC and Loan Application Committee will begin reviewing. A decision will be made within 30 days with funding beginning within 60 days after approval. Contact us today to find out what you can do to receive a loan today!

RLF-COVID-19-App-2020.pdf

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