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How to Establish an RLF

How to Establish an RLF. Planning and Organizing. Planning and Organizing. SEIRPC RLF History Why an RLF? What is the focus of the fund? How is it structured? How are the funds managed?. SEIRPC. Des Moines, Henry Lee, and Louisa Counties 4 Counties 33 Cities 113,000 population

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How to Establish an RLF

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  1. How to Establish an RLF Planning and Organizing

  2. Planning and Organizing • SEIRPC RLF History • Why an RLF? • What is the focus of the fund? • How is it structured? • How are the funds managed?

  3. SEIRPC Des Moines, Henry Lee, and Louisa Counties 4 Counties 33 Cities 113,000 population 5 Rivers in the Region

  4. SEIRPC • EDA Economic Development District • Awarded first RLF Program in 1994 • Received First IRP 2003 • Fort Madison 2003 • Henry County 2005 • Second IRP 2006 • Keokuk 2006 1.5 staff manage portfolio Current Structure • SEIRPC EDA $800,000 • SEIRPC IRP I $750,000 • SEIRPC IRP 2 $750,000 • Fort Madison $200,000 • Henry County $199,000 • Keokuk $199,000 Total Funds $2,899,998

  5. Why an RLF? • Another tool for economic development • Provides gap financing for projects • Injects local match • Targeted development efforts • Regional or locally driven program • Energizes capital sources

  6. Are You Ready For? • Process • Potential for Losses • Long Term Loan • Federal Reporting • Loan Review Committee • Fund Management • Turn Down Loan Applicants

  7. How is it Structured? • Key items for consideration • Management • Application Process • Loan Review Committee • Outside Funding Sources • Reporting • Focus of Loan Pool (Market Sectors)

  8. Process Example 1 • SEIRPC Loan Pools • 12 Member Loan Review Committee • Weighted with lenders • Applications driven by lenders, developers • Gap financing • Staff presents applications to LRC • SEIRPC Board of Directors (Applicant) • Closing with primary lender

  9. Process Example 2 • County or City Fund Process • SEIRPC manages pool contractually • Loan Review Committee appointed by County or City • Leads by lenders, chambers, developers • LRC reviews apps and recommends to Council or Board of Supervisors • Staff finalizes closing on behalf of entity and manages repayment, collections, and reporting

  10. IRP Development • $600,000 USDA • $150,000 Local Match • $750,000 RLF Fund • Regional development projects • Counties, cities contributed local match • Maximum Loan $187,500 • Experience with RLF’s • Administrative Plan

  11. Community – County RLF • Keokuk RLF • Target Commercial – Retail in designated areas • Maximum loan $25,000 • Secured position • City $100,000 matched $99,000 from USDA RBEG Program • SEIRPC secured funding • Administers fund for City

  12. SEIRPC - EDA • Economic Development Administration • Grant to SEIRPC • Fund formed in 1994 • Pool initiated with $450,000 grant and $150,000 local match for $600,000 pool • Focus on gap financing for economic development projects • Loans range from $25,000 to $125,000

  13. City of Fort Madison RLF • City funded RLF with Riverboat Proceeds • Fund initiated with $200,000 • Focus of fund is to assist commercial and retail businesses in zoned areas of the community • Maximum Loan $25,000 • No State or Federal Funds

  14. City of Fort Madison - cont • Projects range from $5,000 to $25,000 • Loan Review Committee 5 members • SEIRPC staffs program • Local banks matched the interest rate of 4% for a total pool of $1,000,000 for the program

  15. Contact Information Brian Tapp Executive Director SEIRPC 1.319.753.5107 x 206 btapp@seirpc.com www.seirpc.com

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