Starting a new business is one of the most difficult challenges a business owner will face. However, it will also be one of the most rewarding experiences once success is achieved. A business start-up may include a variety of combined loan purposes, such as the purchase of inventory, the purchase of equipment, leasehold improvements and the need for working capital. There are many, many variations and needs when starting a new business and RREDC has the financing tools available.
Minimum or maximum loan amount will depend upon the overall project, which often times ranges from hundreds of dollars to millions of dollars. RREDC makes loans of $5,000 to $300,000. We can make larger loans using the Headwaters Loan Fund.
The term for a business start-up loan will vary, depending on the needs of the new business. For instance, if the majority of the business start-up costs involve commercial real estate, then a 20 year term may be appropriate. However, if the business start-up costs are purely inventory and equipment, then a 5 or 10 year term may be more appropriate.
Interest rates are fixed and depend on the overall risk of the business and/or project.
Equity injection (down payment) generally is between 10% and 25%, depending on a variety of factors.
RREDC Loan Application (pdf document)
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.
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.
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!
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 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.
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.
Without RREDC the loan for our business would not be possible. Thanks to them we are in operation today. Thank you for your help.
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.
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!
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.
