Revolving Loan Program

The GLDC revolving loan program is eligible for significant development projects in the City of Greenville that meet the following criteria:

  1. Compatibility with overall land use plan for the district where the project is located.

  2. Consistency with City of Greenville Strategic Plan and City’s Comprehensive Plan.

  3. Consistency with future development plans as may have been adopted by City Council for specific targeted areas and other projects developed by the private sector within the targeted areas.

  4. Job creation and/or retention potential.

  5. Extent to which the project involves endangered historic buildings.

  6. Potential to serve as a catalyst for additional development.

  7. Review of Project’s Business Plan and determination of economic feasibility of project.

  8. Likely effect on ad valorem taxes, business license fee revenues and special fees.

  9. Other aspects, if any, of the public good furthered by the project.

  10. The Loan applicant’s concerted diligent efforts to secure financing from traditional market sources.


PROCESSING PROCEDURES:

  1. Loan application packages will be received by the City of Greenville Economic Development Department.

  2. Staff will verify that the proposed project is within the corporate boundaries of the City of Greenville.

  3. Staff will review the application packages to ensure that they include a minimum of the following items:

    a) Narrative description of the proposed project including project management, ownership, and resumes for principals associated with the project.

    b) Sources and Applications of Funding (including specifics as to GLDC loan funding).

    c) Capital Equipment List (if loan is to be used for this purpose).

    d) Balance Sheet (historical and pro forma).

    e) Income Projections (including a 2-year summary with notes of explanation).

    f) Projected Cash Flow (including specifics as to GLDC loan repayment).

    g) Any appraisals of the project.

    h) Proposed collateral or other securities pledged toward the loan.

    i) Proposed other terms of loan (e.g. interest rate, amortization, maturity, priority). Term cannot exceed 15 years.

    j) The applicant’s efforts to secure financing from traditional market sources.

    k) Any additional information requested by the GLDC Board of Directors.

Packages will be forwarded to the GLDC Board for evaluation and action. Loans will be approved by a majority of the Board eligible to vote (excluding any Board member due to conflict of interest with the applicant).

Staff will draft findings of GLDC Board pursuant to Section 3 of Grant Agreement with the City.


LOAN EVALUATION:

  1. Of greatest importance is the extent to which the project is consistent with and furthers the Approval Criteria.

  2. Other Criteria:

    a) Do the projections show that the repayment of the GLDC loan is reasonably possible?

    b) Is the owner’s stake in the project effectively subordinated to GLDC’s loan position?

    c) Has the applicant been unsuccessful in its attempts to secure the financing to be provided by GLDC from private sources? If so, applicant must explain reasons for not receiving private financing.

  3. GLDC must submit to the City Manager for review and approval of appropriate documentation for all relevant criteria prior to the GLDC’s final approval of the application.