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.
In This Section
Business Acquisition Loans
Purchasing an existing business is an excellent opportunity for many individuals to achieve employment independence. Most business acquisitions combine a variety of loan purposes, such as inventory, equipment and working capital or perhaps equipment, inventory and commercial real estate. These types of loan combinations are very typical in a business purchase, all of which can be placed into "one" business acquisition loan.
Loan amounts range from $5,000 to $300,000. However, RREDC will consider a "participation" with a third party (i.e. the seller or another financial institution seller).
Note that the loan amount can exceed $300,000 in certain cases though the use of the Headwaters Loan Fund.
The term for a business acquisition loan will vary, depending on the type of business and what is being purchased. For instance, if the majority of the business purchase involves commercial real estate, then a 20 year term may be appropriate. However, if the business purchase is purely inventory and equipment, then only a 5 or 10 year term may be necessary.
Interest rates are fixed and depend on the overall risk of the business and/or project.
RREDC can finance up to 90% of the overall project cost on business acquisition loans. Therefore, the remaining 10% of the project cost must be in the form of an equity contribution by the borrower. This contribution can be in the form of cash, investment or financing by an independent third party (lender, friend, or family member).
RREDC Loan Application (pdf document)
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Testimonials
Dianne Harris
Dalianes Travel
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.
Matthew Schmit - President
The Tofu Shop Specialty Foods Arcata
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.
Stephen Martinez
The Forks – Willow Creek
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!
Beverly Wolfe
Avalon Restaurant
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.
Jacquelyn Hulsey - Manager
Aviation Division, County of Humboldt
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.
Bobbi Ricca - Administrative Director
Dell Arte - Blue Lake
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.
Mike Branden
Smug's Pizza
Without RREDC the loan for our business would not be possible. Thanks to them we are in operation today. Thank you for your help.
Debbra Sweet
Partrick's Candy, Eureka
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.
John Dalby - President, CEO
Redwood Capital Bank
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!
Julie Kelly, Au.D
North Coast Audiology
