SEDF Loan Information

The SEDF Business Revolving Loan Fund provides affordable financial assistance to individuals and businesses that lack the initial capital required to expand or start a business.  It is the goal of SEDF to assist with job creation and retention in the region. SEDF works in conjunction with other lending institutions to complete funding packages and reduce the amount of risk associated with small business lending.

Loan Uses
Asset to be financed: Amortization schedule:
Land 20 years
Buildings 20 years
Permanent Fixtures 20 years
Working Capital 7 years
Inventory 5 years
Equipment/Machinery 15 years (or the life of the equipment, whichever is less)
7 years (for Solid Waste Loans to recycling and garbage hauling businesses)   

Lending Parameters
Minimum loan amount:  $20,000
Maximum loan amount:  $250,000
Loan Balloon: 5 years
7 years (for Solid Waste Loans to recycling and garbage hauling businesses)   
Origination Fee: 1.5% of the SEDF loan amount
Lending partner (bank, other financing): Required
Collateral positioning: Loans must be made on a parity basis
Interest rate: Fixed for the life of the loan; 4.75% to 9% depending on the risk and location of the project; 3.25% to 3.5% for Solid Waste Loans to recycling and garbage hauling businesses

Primary consideration given to projects that:
  • Are for-profit organizations
  • Are located within SEDF's service area
  • Provide opportunities to the unemployed, underemployed, minorities, low-income, and socially or economically disadvantaged, among others
  • Do not have other credit available on ample terms to complete the project
  • Have adequate owner's equity investment committed to the proposed project
  • Have an amount of private participation involved with the project that meets SEDF's requirements
  • Would not be able to proceed without the assistance of the SEDF loan