Revolving Loan Fund

The Nash Industrial Development Corporation (NIDC) has established a revolving loan program to assist small businesses locating or expanding within Nash. The purpose of the Revolving Loan Fund (RLF) is to provide below market rate loans, in conjunction with other market rate financing, to support the creation or expansion of economic enterprises and expand employment opportunities for area residents. Repayment of the funds will be used to continue and grow an ongoing revolving loan fund to support expanded economic growth in future years.

The RLF funds will address the two fold economic development strategy of the City, these being: (1) expansion of local growing businesses particularly value-added enterprises, and (2) redevelopment of depressed real estate along the major transportation corridors (US 82 and Kings Highway) for commercial development. Priority for project funding will be for projects located in the Nash Business Park and for projects that redevelop deteriorated sites along the commercial corridors in Nash. 

Loan Guidelines

All businesses requesting RLF assistance will be required to submit a completed application and provide other information as requested to evaluate the credit worthiness of the proposed project. The following guidelines are:

  • Loan Limitations: The NIDC cannot be the majority lender except for Microloans (less than $10,000). RLF assistance will generally not exceed 45% of total project cost. Owner’s equity, bank and private loans, and other financing will comprise the balance of funding. Each RLF project will be individually analyzed, structured, and approved by the NIDC.

  • Microloans: In certain instances, the NIDC will be the primary or sole lender for loans of up to $10,000 to qualified businesses. These Microloans will be considered on a case-by-case basis.

  • Restaurant Restrictions: The NIDC will not consider RLF loan assistance to restaurants or other eating establishments unless full and complete collateralization of the loan amount can be provided.

  • Start-up Businesses: RLF loan assistance to start-up businesses will be carefully evaluated and will not be considered unless full and complete collateralization of the loan amount can be provided. 

  • Cost per Job: The minimum number of jobs to be created/saved with each loan is $25,000 per job created or retained.

  • Interest Rate: The interest rate on the RLF portion of the loan will generally be offered at a below market rate calculated as the current Wall Street prime rate.

  • Loan Terms: The rate and terms of each loan will generally follow these guidelines with flexibility on a case by case basis. The term of the loans will be up to five years for working capital, 5 to 10 years for equipment and fixtures, and 10-20 years for real estate or the useful life of the assets financed. 

  • Loan Evaluation: Each proposed project will be evaluated for viability and potential for long-term economic success. The NIDC will ensure that sufficient collateral, personal guarantees, and other loan underwriting be in place to provide adequate project collateralization. 

Application Requirements

Business or persons interested in being considered for a loan from the Revolving Loan fund will be required to submit the following information: 

  1. Complete RLF Loan Application. Application must be signed by authorized official

  2. Authorization to Investigate Creditand Disclosure Form

  3. Personal Financial Statement of all owners, partners or other principals

  4. Business Federal Tax Return

  5. Personal Federal Tax Return of all principals

  6. Business Financial Statement, including debt schedule

Click Here to view a Loan Request Form.