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, Henry

Lee, 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

Contact Information

Brian Tapp

Executive Director

SEIRPC

1.319.753.5107 x 206

btapp@seirpc.com

www.seirpc.com