Revolving Loan Fund provides expansion support, relief for area businesses

As the region experiences widespread economic growth and a tourism boom driven by burgeoning industries, the Lincoln Trail Area Development District (LTADD), where I serve as Workforce Specialist, is committed to assisting the increasing number of small businesses being established here. 

To that end, we're also focused on supporting existing small businesses by helping them recover from the lingering effects of the COVID-19 pandemic while also building resilience to face new challenges such as natural disasters and unpredictable consumer behavior in today’s ever-changing economy.

One of the most effective ways LTADD does this is through our Revolving Loan Fund (RLF). Established in 1986 through a U.S. Economic Development Administration (EDA) grant, the program has driven job creation and investment across the eight counties that comprise the Lincoln Trail region: Breckinridge, Grayson, Hardin, LaRue, Marion, Meade, Nelson and Washington.

LTADD offers two RLF programs to support small businesses in the region: the LTADD Legacy Revolving Loan Fund and the LTADD EDA-CARES Business Relief Working Capital Loan. 

The LTADD Legacy RLF targets businesses in the industrial, commercial, service and tourism sectors that are expanding and creating or retaining jobs. Loans can be used for equipment, working capital, land or building acquisitions, but cannot be used for new development. These loans are provided at rates four percentage points below the U.S. Prime Interest Rate and require a primary source of funding. Maximum loan terms are 15 years for fixed assets and five years for working capital. With $193,000 currently available for loans, LTADD stands ready to assist small businesses in financing new ventures and capitalizing on the region’s economic momentum.

The LTADD EDA-CARES Business Relief Working Capital Loan is designed for businesses impacted by COVID-19 or the current economic climate, providing working capital for payroll, rent, utilities, inventory management and other short-term needs. Loans under this program range from $5,000 to $40,000, with terms up to 36 months, and are offered at low interest rates (Wall Street Journal Prime minus 4 points, no lower than 4%). The EDA-CARES program specifically helps with recovery and resilience, with $170,000 available for loans to businesses in industrial, manufacturing, commercial, agricultural, service, transportation or healthcare sectors.

Since its inception in the Lincoln Trail region, the RLF program has now empowered 86 small business owners, disbursing more than $3.7 million in loan funds and catalyzing the creation of 905 jobs while retaining 346 positions in the region.

With careful oversight from the LTADD Loan Review Committee and Board of Directors, our dedicated staff handles every aspect of the program, from coordinating applications to managing financial reporting. We closely monitor RLF-funded projects to ensure they align with our work to drive economic growth and job creation.

To learn more about the RLF program, including information on applying, visit https://ltadd.org/services/revolving_loan_fund. 

Anthony Hellmueller serves as Workforce Specialist for the Lincoln Trail Area Development District. He can be reached at anthony@ltadd.org.