Revolving Loan Fund
An important regional economic development tool, NACOLG’s Revolving Loan Fund (RLF) program consists of locally controlled capital used to provide “gap” financing for new or expanding businesses looking to create or retain jobs. The program targets small- to medium-sized businesses, small manufacturing companies, and local municipalities, with the goal to stimulate, develop and advance business and economic development, ultimately reducing unemployment and creating jobs. The Revolving Loan Fund works cooperatively with lending institutions on loans the institutions might not ordinarily make on their own.
While NACOLG staff administers the program, the NACOLG RLF Loan Administration Committee – a group of ten representatives from Colbert, Franklin, Lauderdale, Marion, and Winston Counties – governs the RLF program. The Loan Administration Committee meets on an as-needed basis to discuss and vote upon all loan applications.
Department Contacts:
Jeff Thompson - Revolving Loan Fund Manager
jthompson@nacolg.org
256-389-0592
For more information including eligible activities, interest rates, loan terms, and funding amounts, see the documents below:
For more information regarding the RLF Program, please fill out the form below.
Revolving Loan Fund Frequently Asked Questions
What is the NACOLG Revolving Loan Fund?
The NACOLG Revolving Loan Fund (RLF) provides locally controlled financing to support eligible new and expanding businesses that will create or retain jobs in Northwest Alabama.
As borrowers repay their loans, the funds can be used again to support additional economic development projects.
What is gap financing?
Gap financing helps fill the difference between the total cost of a project and the financing available from banks, business owners or other sources.
The RLF generally works alongside other lenders and funding sources rather than financing an entire project by itself.
Who may qualify for a Revolving Loan Fund loan?
The program primarily serves:
New or expanding small and medium-sized businesses
Small manufacturing companies
Businesses working to create or retain jobs
Eligible local municipalities
All applicants must meet the requirements of the applicable state or federal RLF program.
Can a startup business apply?
A new business may be eligible if it has a viable project, an acceptable financing plan and the potential to create jobs. Approval depends on the complete application, available funds and the applicable program guidelines.
Can an existing business use the RLF to expand?
Yes. Expanding businesses may apply for financing when the proposed project supports job creation, job retention or economic development within the region.
Does NACOLG work with banks on business loans?
Yes. The Revolving Loan Fund works cooperatively with banks and other lending institutions on projects that a traditional lender might not finance completely on its own.
Do I need to apply with a bank before contacting NACOLG?
Because the RLF is intended to provide gap financing, applicants may need to demonstrate what financing is available from a traditional lender or other sources. Contact the RLF Manager early to discuss the project and determine the appropriate order of application.
What can Revolving Loan Fund money be used for?
Eligible uses depend on the state or federal program funding the loan. Applicants should review the current program guidelines or contact NACOLG before committing funds or beginning a project.
Potential borrowers should not assume an expense is eligible until NACOLG confirms it.
Can RLF financing be used to refinance existing debt?
Debt refinancing may be restricted or prohibited depending on the applicable program. Discuss any existing debt with the RLF Manager before submitting an application.
How much can I borrow?
Available loan amounts depend on the project, financing gap, job impact, applicable program requirements and available RLF capital. Contact NACOLG for current minimum and maximum funding information.
What interest rates and repayment terms are available?
Interest rates and loan terms vary according to the applicable RLF guidelines and individual project. Current information is available in the state and federal program documents on the NACOLG Revolving Loan Fund page.
Is collateral required?
Collateral and personal guarantees may be required depending on the loan structure and program guidelines. NACOLG will evaluate the proposed collateral as part of the application and underwriting process.
Is there a job-creation requirement?
The RLF is designed to support projects that create or retain jobs. The number and type of jobs associated with a project may affect eligibility and loan terms.
Applicants should be prepared to explain how the proposed project will affect employment.
What documents are required with an application?
Requirements vary, but applicants may need to provide:
A completed loan application
A business plan
Financial statements
Tax returns
Project-cost estimates
Sources and uses of funds
Job-creation or retention information
Bank financing information
Ownership and management information
Collateral documentation
Review the Revolving Loan Application Checklist before submitting an application.
Who reviews and approves RLF applications?
NACOLG staff administers the program, but the RLF Loan Administration Committee reviews and votes on loan applications.
The committee consists of representatives from Colbert, Franklin, Lauderdale, Marion and Winston counties and meets as needed.
Does submitting an application guarantee approval?
No. Applications are evaluated based on program eligibility, creditworthiness, repayment ability, collateral, job impact, available funds and other applicable requirements.
How long does the loan application process take?
Processing time depends on the completeness of the application, underwriting requirements, requested documents and the Loan Administration Committee’s meeting schedule.
Applicants can help prevent delays by submitting all required information and responding promptly to questions.
Is emergency business financing available?
The NACOLG website includes an Emergency Loan Fund Application. Because availability and requirements may change, businesses should contact the RLF Manager before applying to confirm that emergency funds are currently available.
What areas does the Revolving Loan Fund serve?
The program serves eligible projects in:
Colbert County
Franklin County
Lauderdale County
Marion County
Winston County
This includes businesses seeking financing near Florence, Muscle Shoals, Sheffield, Tuscumbia, Russellville, Red Bay, Hamilton, Winfield, Haleyville, Double Springs and surrounding Northwest Alabama communities.
How do I begin the application process?
Contact the NACOLG Revolving Loan Fund Manager before submitting an application. An initial conversation can help determine whether the project appears to fit the program and which documents and guidelines apply.