SARPC Revolving Loan Fund

Loan Structure

The SARPC can provide up to 1/3 of the total project costs, with private lending institutions providing the balance of the financing requirements. The participating private lending institution will hold the first mortgage with the SARPC taking a second position.

Loan Amount

The minimum loan amount will be $10,000, and the maximum loan limit will be $125,000. No more than 30 percent of a loan may be for working capital.

Interest Rates

The borrower must justify the need for the below market rate and the typical loan is expected to be prime to two points below prime. The private lenders will set the interest for their loans.

Maturity Terms

The terms of maturity of loans will vary, but these repayment terms are generally considered appropriate:

Criteria Funding with satisfactory terms and conditions must be unavailable from conventional lenders. The job to cost ratio for a project should average $10,000 per job of SARPC money.

For additional information, contact:

The South Alabama Regional Planning Commission
P.O. Box 1665
Mobile, AL 36633
Telephone: (251) 433-6541