Revolving Loan Fund

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1. Review the following information to determine your project’s eligibility. If you feel your project is eligible, proceed with step two.

2. Contact Kelly McCarty, President of the Clay County Revolving Loan Fund, or a lending institution located within Clay County for an application form.

3. Complete the application materials, providing all requested information, and submit them to your lender and the Clay County Revolving Loan Fund.

4. Upon receiving the application materials, the Revolving Loan Fund Committee will convene to review the application. The applicant and their lender will be called to participate in a confidential interview process.

5. The RLF Committee will then make a recommendation to the Clay County Board of Supervisors who hold the final authority on granting or rejecting the loan application. The Clay County Board of Supervisors meets every other Tuesday of each month.

The purpose of the Clay County Revolving Loan Fund is to further economic development through joint private and public investments which involve the creation of new jobs and income, or the retention of existing jobs and income.

The Clay County Revolving Loan Fund committee and the Clay County Board of Supervisors must determine that an economic benefit to Clay County will reasonably be accomplished before providing any RLF financial assistance. The committee shall give consideration to factors including, but not limited to, the following:

1. The loan fund will be used to assist existing or start-up businesses including areas of manufacturing, retail, and/or service located in Clay County.
2. Revolving Loan Fund resources may be used to attract businesses or to expand existing businesses.
3. Economic impact on Clay County from the loss of jobs associated with employers leaving the county or ceasing operation.
4. Economic impact on Clay County from the creation of new jobs or retention of existing jobs.
5. Quality of jobs and wages paid will be a consideration.

1. Funding which is provided will be treated as public funds.

2. Interest earned on both Revolving Loan Fund loans and investment of unloaned portions of the Revolving Loan Fund will accrue to and remain in the loan fund.

3. Revolving Loan Fund funds loaned will be secured through the use of liens, security agreements, or mortgages subordinate to private lending institutions whenever possible.

4. Lenders who are involved in a Revolving Loan Fund project shall participate in an annual review of the project until the loan is satisfied. After full review, the Clay County Revolving Loan Fund committee will determine if changes in the project need to be made.

5. Borrowers will provide monthly financial statements no later than 30 days after the end of month.

6. These guidelines can be changed or amended by a vote of a majority of members of the Clay County Revolving Loan Fund Committee, with final approval given by the Clay County Board of Supervisors.

1. The Clay County Revolving Loan Fund will be in the custodial care of the Clay County Treasurer, including but not limited to, loan disbursements, receipt and deposit of payments. The Clay County Auditor’s office will be the physical custodian of all permanent records.

2. The Clay County Revolving Loan Fund committee will have the responsibility for determining loan advisability. This includes, but is not limited to, negotiating with borrowers such items
as loan amounts, loan duration, and repayment terms. The RLF committee will then make a recommendation to the Clay County Board of Supervisors. Final loan approval rests with the Clay County Board of Supervisors.

3. Whenever possible, a member of the participating private lending institution shall be a nonvoting participant in the RLF committee loan approval discussions.

4. A majority of the RLF committee must be present to conduct business.

5. The Clay County Revolving Loan Fund committee shall be appointed to three year terms by the Board of Supervisors of Clay County. Terms will be staggered.

6. CEBA or SBA application forms can be used in lieu of the Clay County Revolving Loan Fund Application.

1.   Any projeet loeated within Clay County.
2.   There is a recommended maximum of $10,000 laaned for eaeh job ereated or retained. Jobs must be ereated or retained within 24 months and maintained for the duration of the loan.
3.   lt is suggested the applieant provide a minimum of 75% of the total projeet eost through equity injeetion, additional finaneing, or equivalents.
4.   Of the 75% the applieant must provide, a minimum of 12% of the total project eost must be in the form of eash or equivalents.

1.   All prineipal and interest will be paid baek into the Clay County Revolving Loan Fund. A proeessing fee of $10.00 per payment will be ineluded in the loan payment. All payments will be automatieally debited from the borrower's eheeking aeeount on the 15th of the month.
2.   lt is reeommended there be a maximum 1 o-year paybaek on a loan from the RLF.
3.   The Clay County Revolving Loan Fund eommittee and the applieant and/or their designated representatives will negotiate loan terms.
4.   The reeipients of the Revolving Loan funds must personally guarantee the loan.
5.   The eompany or individuals reeeiving Revolving Loan funds must maintain life insuranee on the owners with the Clay County Revolving Loan Fund named as beneficiary for the balance of the loan outstanding.

6. lf the reeipient of the Revolving Loan funds moves the tunded business from Clay County,fails to eomply with any provision of their speeifie loan agreement, or any portion of theseguidelines, or fails to meet job ereation/retention goals offered as justifieation for use of RLFfunds, the Clay County Revolving Loan Fund eommittee reserves the right to eall the loandue, aeeelerate payment, or utilize other remedies to enforee eomplianee.

7. lnterest rates and projeet terms may be based on the following eriteria:lnterest rates will be reviewed and set by the Clay County Revolving Loan Fund eommitteefor eaeh applieation. The term of the loan will also be at the diseretion of the eommittee.