The Baton Rouge Area Chamber and national nonprofit community development financial institution TruFund today announced a $1.1M revolving loan fund available for regional businesses to access loans of up to $250,000 for working capital, contract financing, inventory, marketing, and business development.
The RLF will focus primarily on those businesses most vulnerable to the COVID-19 pandemic, specifically those with 50 employees or less and with revenues of less than $3 million.
The RLF is being initially funded by a three-year grant from the U.S. Economic Development Administration to provide both short- and long-term financing. Loans will have terms extending from six to 60 months with interest rates between 0 and 10% depending on the loan product. RLFs are self-replenishing, with interest and principal payments on old loans used to issue new ones.
The Capital Region RLF is the first of TruFund’s in the state. In addition to BRAC, several regional nonprofit and community-based organizations are partners in the RLF, including the Ascension Economic Development Corporation, BUILD Baton Rouge and Capital Region Planning Commission.
Small businesses interested in applying for a loan through the RLF can get more information here.