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The Revolving Loan Fund's
(RLF) primary goal is job creation and protection. It is a federally
initiated, state-backed program designed to assist businesses whose projects
should improve the tri-county economy. Eligible uses for loans include
the purchase of equipment and land and the improvement of real estate and
building facilities.
Despite its federal
oversight, the program remains locally controlled. The people who make
the decisions on project funding are Charleston area business people,
community leaders and bankers. The Revolving Loan Fund specializes in
gap financing, or resolving cash shortages that would prevent a successful
closing.
The first Revolving Loan
Fund was created in 1990 in the wake of Hurricane Hugo. To help the
region recover from the storms' financial devastation, the US Economic
Development Administration agreed to put forth 75% of a $500,000 fund.
The state responded by supplying the 25% match. When the region's
economy was rocked once more by the closure of the Charleston Naval Base and
Shipyard in 1994, the EDA and the state again answered the call by creating a
second fund, this time worth $1 million.
The
RLF has loaned out a total
of $4.3 million to 35 business through the
Berkeley-Charleston-Dorchester area. Those investments have
translated into 1,423 jobs being retained or created. That
translates into only $2,500 per job, or 3.5 jobs for every $10,000
loaned. By comparison, the EDA stipulated that RLFs shall spend no
more than $10,000 per single job created or saved.
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SERVICES