Rural business loan funds available

Do you have a business idea and just need a few thousand dollars to get your business idea off the ground’ If you do, then consider the Rural Business Revolving Loan Fund from the Regional Consortium for Economic Development. One of the common obstacles to starting a business is the lack of capital needed to get it started. The Revolving Loan Fund is ready to help you with the small amounts of capital you need to get your idea off the ground or to expand the fledgling business you have already started. Designed specifically for the 12 rural counties of the Concho Valley (Tom Green County not included), the Revolving Loan Fund is a below market rate interest loan that can help an entrepreneur secure the funds needed to start a business or expand his existing business. It is not meant to replace loans from a bank, but is meant as another tool in your tool box to supply the ‘gap’ capital you need to be successful. In reality, some banks prefer to make larger loans and they rely on micro-lending programs such as these to supply small amounts of capital. Also some beginning entrepreneurs, because of various reasons, may not be able to secure a bank loan until later in their existence. The Revolving Loan Fund was started a year or so ago by the Concho Valley Workforce Development Board with a federal grant from the U.S. Dept. of Agriculture. In combination with others, it developed a simple application package that can be easily completed. Organizations such as the ASU Small Business Development Center can assist anyone with the application at no cost. The loan size is in the $2,000 to $10,000 range and the interest rate is in the four to seven percent range. Currently the loan committee is considering loans higher than the $10,000 limit. The completed application is then presented to the loan committee of the Regional Consortium for Economic Development for review and possible approval. It is that easy! There are various sources of funds to start a business or to expand a young business. There are the traditional bank loans. There are loans or equity investment from friends, family, or other private individuals. Consider the Revolving Loan Fund as one of these sources of funds. The application is fairly simple, and as mentioned before, there are organizations that can assist with its completion. For more information contact the Concho Valley Workforce Development Board at (325) 655-2005. Also to download an application you can visit their website at www.cvworkforce.org. ‘Business Tips’ was written by Dave Erickson, Director and Certified Business Advisor IV, of Angelo State University’s Small Business Development Center. For more information on the topic of this article or the services of the ASU- SBDC, contact him at David.Erickson@angelo.edu.

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