RREDC is an “economic development lender” which means that our loans need to help with one or more of the following:
We can only make loans to businesses based in Humboldt County.
RREDC often participates with other lending institutions. For example, we work with local lenders in providing “gap” financing on real estate secured loans that are owner occupied (at least 51% of the space).
How does this work? Suppose a borrower needs $300,000 to purchase a new facility to house their business. The lead lender is willing to finance $210,000, but the borrower only has $40,000 for a down payment. RREDC may be willing to provide the remaining $50,000 in the form of a second deed of trust on the property. Our involvement happens at the invitation of the lead lender and we work concurrently in getting our respective loans approved. Of course, the borrower’s cash flow needs to be sufficient to service the debt to the lead lender, RREDC, and to any other creditors.
Assuming that the property appraises at $300,000, the combined loan-to-value would be 87% ($260,000/$300,000) or 96% on a discounted basis.
RREDC's collateral guidelines allow a maximum combined-loan-to-discounted value of 100%. Some examples of owner-occupied real estate deals that we have financed in conjunction with a lead lender include:
Download Lender Brochure (pdf document)
We were in the midst of a difficult $1,000,000 renovation project after our building got red-tagged for earthquake safety. Banks were leery of loaning to us because our non-profit income stream did not look dependable to them. RREDC had a wider vision and came through for us at a critical moment.
I literally wouldn't be a business owner without the help of RREDC. I was in an unique situation where I didn't qualify for a bank loan and RREDC took a chance on me. I have now owned my audiology practice for nearly 5 years!
Ten years ago my husband and I hoped to open a dinner restaurant. No one would lend us for such a "risky" project. We had a great local reputation and 45 combined years of experience in 4 star restaurants. RREDC made it happen for us! Now we are the premier restaurant in our area, creating jobs and training for young people, paying living wages, providing health care benefits and giving back generously to our community. Thank you RREDC for recognizing our potential!
Without RREDC the loan for our business would not be possible. Thanks to them we are in operation today. Thank you for your help.
In 1999, my business partners and I applied for a working capital loan at RREDC. They made it easy and possible for us to start our venture as the new owners of Dalianes Travel.
RREDC not only helped with financing our expansion, they also offered advice and support along the way.
Without RREDC, growing our business would have been nearly impossible. They can help when larger institutions can't.
RREDC's support has been instrumental in our successes developing additional air service destinations and in providing the necessary airport infrastructure needed for those services.
The Redwood Region Economic Development Commission has been very responsive to individuals and businesses that we have referred to them. The staff is both knowledgable and caring. We have no reservations recommending RREDC to our clients who can benefit from their services.
Thanks to RREDC we were able to acquire the additional necessary money we needed to help capitalize our new business venture after all efforts through commercial lenders were exhausted. RREDC was also very helpful in assisting us with our business plan. All of their personnel are wonderful to work with.
In 2000 when I began planning to purchase a lot and build a custom tofu-manufacturing plant in Arcata's Aldergrove Industrial Park, RREDC provided invaluable professional advice and moral support during the business plan phase, and ultimately, supplemental financing to make the plan a reality. Their continued support since has helped Tofu Shop Specialty Foods survive and thrive.
