Economic Development
 The
Department of Governmental Services assists local
governments, businesses and industries in obtaining
the necessary infrastructure, and/or financing for
the creation or retention of jobs in the five county
region. The department works closely with numerous
agencies to secure the necessary funding for
economic development projects including: Alabama
Department of Economic and Community Affairs,
Appalachian Regional Commission,
Economic Development Administration, Small Business
Administration, Rural Development and others.
Revolving Loan Program
The NACOLG Revolving
Loan Program is an important economic development
tool which consists of locally controlled capital
being used to finance new or expanding businesses to
create or retain jobs. The program targets small to
medium sized businesses and small manufacturing
companies.
RLF Funds
can:
-
Purchase land or
buildings
-
Construct or
renovate buildings
-
Purchase equipment
and machinery
-
Provide working
capital
Interest rates on RLF
loans are below prime and determined by project need
for up to 1/3 of the total project cost. RLF
complements local banking efforts due to the fact
that it provides "gap" financing or a secondary
source of funds.
Locally controlled, the
Revolving Loan fund is governed by NACOLG's Loan
Administration Committee -- a group of
representatives from Colbert, Franklin, Lauderdale,
Marion and Winston Counties.
Guidelines:
-
Loan results in
creation of jobs
-
Equity injected by
business
-
Loans range:
$10,000 - 125,000
-
Terms ranging:
5-15 years
-
Provide personal
guarantees
-
Generate cash flow
to repay debt
-
Provide insurance
for loss payee
-
Be located in
NACOLG region
-
Borrower pays legal
costs and application fees
Department Contacts:
Marilyn
Smith (Economic Development) -- 256-389-0550
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