Revolving Loan Fund
MEC has established a Revolving Loan Fund through the United States Department of Agriculture REDLG grant. Businesses and non-profit entities may be eligible for a loan through the MEC Revolving Loan Fund (RLF). Eligible projects for loans can include any community or economic development project that benefits the local communities, such as new or expanding private business, non-profits groups, and city or county governments.
Loan recipients may be:
- New or expanding private businesses
- Not-for-profit entities
- City or county governments
Eligible uses of funds:
- Land purchases
- Machinery & equipment
- Fixed assets
Ineligible uses of funds:
- Speculation land purchases
- Payments to owners or equity investors
- Debt refinancing
- Projects which lack economic development potential
The RLF Committee will consider the financial need of the project, the probability of success, the benefits of the project to the rural area, including number of jobs to be created or retained, diversification of the economy, quality job creation in terms of pay scale and benefit package, and community development projects and improvements to the community infrastructure.
Loan Amounts - The eligible loan amount will be a minimum of $5,000.00 and a maximum of $300,000.00.
Guidelines - Low-interest loans are available from Macon Electric Cooperative to assist with community and economic development projects in rural areas.
Term of Loan - Not to exceed 10 years
Interest Rates - Interest rates will vary from project to project with the interest rate not to exceed the prime rate as published in the Wall Street Journal.
Loan Security – The RLF requires adequate collateral for the loan request which can include requiring mortgages, liens, and or personal guarantees. Other terms or conditions may be required as determined by the Board of Directors.
Other Funding - The RLF project must include a minimum of 20% funding from other sources. Greater leveraging of outside sources will enhance the approvability of a RLF loan request.
Administrative Fee – Generally, a loan service fee will be charged, not to exceed one percent per year on the unpaid balance of each Revolving Loan Fund loan, plus attorney fees incurred by MEC, in connection with the loan.