Twin Cities Development Now Has a Revolving Loan Fund to Support Small Businesses in Western Nebraska
August 12, 2024
Twin Cities Development (TCD) recently received a Rural Business Development Grant from the USDA to establish a revolving loan fund for small businesses in Western Nebraska. This fund will help rural business owners fund essential projects to expand their operations, increase production, or improve efficiency.
Business owners interested in applying for a loan can book an appointment with Steven Pederzani, TCD's Funding Consultant. There is no minimum amount to apply for and the loans can be used for a variety of projects, such as purchasing a building, investing in equipment, or restocking supplies. Here are a few frequently asked questions about the loan fund and its use.
What is a revolving loan fund?
A revolving loan fund is a program that lets businesses borrow money to cover expansion and improvement projects. These loans are often used for gap funding when business owners need extra cash to cover their expenses.
For example, a business owner might cover 50% of project costs and the bank will agree to cover an additional 30%. The revolving loan fund would cover the remaining 20% to make the project happen.
“Revolving loan funds by economic development organizations like TCD are designed to support local communities,” says Jordan Diedrich, Executive Director of TCD. “If money is preventing a business from achieving its goals, our loan fund could be an ideal solution to the problem.”
What are the benefits of applying for a loan from TCD?
The goal of the revolving loan program is to help local business owners reach their funding goals. Without adequate funding, many projects are put on hold or canceled entirely, limiting the ability of local businesses to operate successfully. This loan fund can help business owners overcome financing hurdles so they can focus on executing their projects.
The loans issued by TCD are also designed to have favorable terms. These include low interest rates, reasonable monthly payments, and minimal fees. The loan fund can help business owners save money by securing affordable financing.
Will the loan fund run out of money?
TCD received a Rural Business Development Grant from the USDA with the goal of using the money to create the loan fund. The funds will be distributed as loans to applicants throughout Western Nebraska and then will be paid back over time with interest. This money will then be returned to the loan fund, where it can be used to support another project. Because of this, the money should never run out.
“The revolving loan has the potential to support Western Nebraska residents for decades as payments on successful projects are reinvested in the region,” says Diedrich. “We are excited to see how this fund helps the community.”
Discuss Your Project With TCD Today
If you are interested in learning more about the revolving loan program and potentially applying for a loan through TCD, contact us today. You can also book an appointment directly online at a time that works best for your schedule.
