How to Establish an RLFPlanning 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?
Des Moines, HenryLee, and Louisa Counties
4 Counties
33 Cities
113,000 population
5 Rivers in the Region
SEIRPC
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
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
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
Are You Ready For?
• Process
• Potential for Losses
• Long Term Loan
• Federal Reporting
• Loan Review Committee
• Fund Management
• Turn Down Loan Applicants
How is it Structured?
• Key items for consideration– Management
– Application Process
– Loan Review Committee
– Outside Funding Sources
– Reporting
• Focus of Loan Pool (Market Sectors)
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
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
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
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
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
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
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
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