Regional Planning Commission of Greater Birmingham

Economic Development

Revolving Loan Fund

The Regional Planning Commission of Greater Birmingham operates a revolving loan fund that provides supplemental financing for expanding businesses located in Blount, Chilton, Jefferson, St. Clair, Shelby and Walker Counties whose projects will result in the creation of new permanent jobs. Prospective borrowers must have a commitment from a private sector lender. RLF funds may be used in conjunction with SBA 504 and 7(a) guarantees, commercial loans and mortgage loans. Prospective RLF borrowers should have at least two successive years of profitable operating experience. The advantages of using RLF funds are: 1.) 20 year terms for real estate, 2.) fixed interest rates, and 3.) up to 90% financing. Eligible uses include the purchase and development of land and buildings, the renovation or modification of existing buildings, purchase of machinery and equipment and the provision of permanent working capital. The following repayment terms are considered appropriate for most RLF projects.

• Building and Real Estate Up to 20 years
• Machinery and Equipment 5-8 years
• Working Capital 1-5 years

Listed below is a sample loan project having a total project cost of $1,000,000.
$700,000 (70%) Bank Loan
$200,000 (20%) RLF (20 Yrs. Fixed Rate for Real Estate)
$100,000 (10%) Equity

General RLF guidelines are listed below:

• Create one new job for every $25,000 of RLF assistance
• RLF funding is not to exceed 30% of the total loan cost for a maximum of $200,000
• Loans are to be secured by lien positions on collateral
• Proof that other private financing has been secured
• Prospective borrowers will need to supply financial statements for the last 3 years of operation.

For information about RLF loans contact Ray Morris at 205/264-8405 or email rmorris@rpcgb.org.

Economic and Community Development Resource Directory, 2005

Comprehensive Economic Development Strategy (CEDS)

At its September 2006 meeting, the RPC Board of Directors adopted the annual update of the region's Comprehensive Economic Development Strategy (CEDS). Prepared for the six-county region under the guidance and direction of the CEDS Strategy Committee, the report includes an updated assessment of the region's demographic and socioeconomic profile and a review and update of economic goals and strategies. It also includes a list of projects throughout the region that may be eligible for funding from the Economic Development Administration. The RPC is an Economic Development District (EDD) under the guidance of the Economic Development Administration (EDA). This update is a requirement from EDA in order to continue as an EDD.