Revolving Loan Fund

Keeping with our commitment to be a community-involved cooperative, Baldwin EMC has established a Revolving Loan Fund (RLF). The RLF program exists to provide funds for gap financing (in partnership with area financial resources) to promote economic development and the creation of jobs in Baldwin and Monroe counties. Baldwin EMC seeks continued improvement in the quality of life in rural areas. Activities like job creation and retention, business development, training and education, and upgrading infrastructure to improve the health and safety of residents are the goals of this loan fund.

How to Apply:
Determine if the proposed project meets the program guidelines. If the project has merit, the prospective borrower is asked to complete an application and supply financial documents as well as a business plan. Decisions concerning approval or disapproval of loans, terms and interest rates are made by the RLF loan committee and the Baldwin EMC board of trustees.

Eligible Projects or Activities:

  • Industrial or Commercial Development
  • Small Business Expansion
  • Small Business Start-Up
  • Business Incubators
  • Community Infrastructure/Facilities
  • Medical Facilities
  • Training/Educational Facilities

Ineligible Projects or Activities:

  • Refinancing existing debt or payments to business owners or partners
  • Activities for investment purposes
  • General improvements loans related to normal replacement needs or unrelated to business or job creation
  • Agricultural production costs
  • Vehicles for general purposes or personal use
  • Projects without supplemental financing
  • Primarily working capital with limited security
  • Residential construction projects
  • Projects which have appearance of conflict of interest due to cooperative employees, directors, officers or relatives involved in the project
  • Projects where recipient of a loan would be required to purchase or lease any real property, products or services from Baldwin EMC, its subsidiaries or affiliates

Loan Terms or Conditions:
Maximum of $400,000 or 50% of Project; minimum loan is $20,000.

Maximum interest rate is prime rate; target rate is 1% below prime.

Repayment Terms:

  • Building & Real Estate: 20 years
  • Equipment: 5 to 7 years (or anticipated life of the equipment)
  • Working Capital: 1 to 3 years (Working Capital is typically provided as part of a total financial package financing other assets.)

Security is typically a letter of credit. Other types of security might include:

  1. First lien position on real property
  2. Machinery and equipment with a developed market
  3. Securities issued by the Federal government or its agencies
  4. Accounts receivable & inventory for short-term loans

For more information about the Revolving Loan Fund, contact us at 251.989.6247 or