Deborah Gosney, Executive Director of the Southside Planning District Commission, joined RISE to tell the RISE community about the Lake Country Development Corporation’s loan funds and what organizations need to apply. Watch the video or read below for more information.
The information below was accurate as of the September 21 meetup. For the most up-to-date information, please visit https://www.southsidepdc.org/services/economic-development/lcdc.
Lake Country Development Corporation (LCDC) was formed in 1981 as a private, non-profit 501(c)3 corporation responsible for the administration of revolving loan funds to promote job creation in the Southside Planning District Commission (SPDC) region of Halifax, Mecklenburg, and Brunswick Counties. Lake Country Development has three different loan funds: the EDA Pool, the IRP Pool, and the Microloan Pool. Deborah noted that the EDA Pool has been defederalized, so some of the rules below will be changing.
EDA Pool
Since 1981, the EDA Pool has loaned $9,407,319, with a return of 1,808 jobs created, 98 jobs retained, and $46,826,608 in private investment.
Details of the EDA Pool
- Loan Amount: $40,000 – $400,000
- Interest Rate: 3 points below prime with a floor of 3%
- Job Creation Retention: 1 / $40,000
- Minimum Equity: 10-15%
- Security: Fixed assets & personal guarantee
- Loan Term: Useful life of fixed asset or 5 years for working capital
- Loan Fees: 1%, not to exceed $2,500 plus all closing costs
- Eligible Borrowers: Units of local government, public and private nonprofit organizations, small to medium sized businesses (view video at 4:11 for more detail); retail businesses are ineligible to apply for the EDA Pool
IRP Pool
Since 1981, the IRP Pool has loaned $550,000, with a return of 99 jobs created and $1,814,000 in private investment.
Details of the IRP Pool
- Loan Amount: $40,000 – $150,000
- Interest Rate: 3 points below prime with a floor of 4%
- Job Creation Retention: None
- Minimum Equity: 15%
- Security: Fixed assets & personal guarantee
- Loan Term: Useful life of fixed asset or 5 years for working capital
- Loan Fees: 1% plus all closing costs
- Eligible Borrowers: Industrial Development Authorities (IDAs) and private, for-profit businesses
Microloan Pool
Since 1981, the Microloan Pool has loaned $205,000, with a return of 3 jobs created, 46 jobs retained, and $21,000 in private investment.
Details of the Microloan Pool
- Loan Amount: $5,000 – $40,000
- Interest Rate: 3 points above prime
- Job Creation Retention: None
- Minimum Equity: Case-by-Case
- Security: Case-by-Case
- Loan Term: 5 years
- Loan Fees: 1% plus all closing costs
- Eligible Borrowers: Small businesses
How to Apply
OR contact one of the SPDC Senior Community Planners
What You Need to Apply
– A cover letter detailing the request in narrative form
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- Describe existing operation or attach a business plan if it is a start-up
- Contact the Longwood Small Business Development Center representative for your county if you need help developing a business plan (https://sbdc-longwood.com/contact-us/)
- Explain why you need the loan funds and the projected use of the funds
- Detail how many jobs with be created or retained. Job retention is when business closure is imminent without loan assistance.
- Describe if private or bank participation is involved
- Describe the collateral being offered
- Provide a statement of position on all existing loans
– A referral letter or a couple of denial letters from a financial institution. LCDC is a gap lender, or lender of last resort. (Not applicable on microloans)
– A credit report in the absence of a bank referral letter
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- Borrowers must pull and provide their own credit report. You are entitled to a free credit report every 12 months from each of the three major consumer reporting companies (Equifax, Experian, and TransUnion). annualcreditreport.com