RLF Application(PDF File) Revolving Loan Fund Questions and Answers Fees Associated with LDC Loans

The St. Louis Local Development Corporation (SLDC) has the ability to provide direct, low interest, subordinated loans for working capital, machinery and equipment, purchasing land and buildings, renovation and constructing facilities and leasehold improvements. Your business must be located in the City of St. Louis and be licensed to do business in the City. There must be a least one full-time job created/retained for every $10,000 of RLF funds. Ineligible uses include speculative real estate ventures, franchise fees and refinance. RLF loans can provide up to 1/3 of project cost to a maximum loan amount of $150,000. RLF loans will be collateralized to the fullest extent possible and require the personal guaranty of the principles.

Actual RLF loan amounts are determined by the projected number of jobs to be created over a 2-year period. A typical RLF loan structure is 60% funding from a bank secured by a first security interest or deed of trust in the assets being financed, 30% RLF funds and 10% in equity. RLF loans typically carry a low 4%-5% interest rate fixed for the term of the loan and the maturity will generally match the term of the bank loan. Loan recipients are required to enter into a first source employment agreement with SLATE for referrals of new entry-level positions.

Approval by the LDC Board is required. Approved projects are generally funded 4 to 6 weeks after approval.

This program is financed in part through grants from the U.S. Department of Housing and Urban Development and the Community Development Agency under the provisions of Title I of the Housing and Community Development Act of 1974, as amended (P.L. 93-383)