Home » Economic Development » Northwest Wisconsin Rural Economic Development Fund » NWREDF’s Loan Programs » Loan Terms
- Interest Rate: Except in rare circumstances, all loans will be below market per annum interest rate. Short-term working capital and higher risk loans may be offered at a higher interest rate.
- Term of Loan: In most circumstances, the term will depend on the life of the asset financed. In no case will the term be longer than the participating lender.
- Collateral: Normal 100% coverage may subordinate in certain circumstances.
- Repayment Terms: Deferrals of principal and interest may be made for a maximum of two years on a project by project basis. During this period, interest will accrue and the note will be amortized over the remaining term of the loan.
- Economic Impact: Business must demonstrate economic impact of project through the creation and/or retention of jobs and the leveraging of other funds.
- Equity Requirements: The applicants generally must provide a minimum of 10% of the defined package total cost in the form of equity. Equity can be cash and/or an equivalent value of land, buildings, or equipment not currently being used in the production process.
- Guarantees: The personal guarantees of all owners of 20% or more of the applicant are typically required as a condition of lending. Corporate guarantees of other corporations owned by the principals may be required as a condition of lending.
- Loan Closing Costs: All third party fees which are billed to the NWREDF will be passed on to the borrower.