Next Generation Revolving Loan Fund
The Next Generation Revolving Loan Fund is operated by the Plainview Economic Development Authority (EDA). The primary purpose of the Fund is to provide gap financing to start-up or expanding businesses in the Plainview area. It is also available to businesses that choose to re-locate to Plainview.
The Next Generation Revolving Loan Fund was established in 2010 using funding from a USDA Rural Business Enterprise Grant. The Fund is administered by the EDA, and loan decisions are made by a committee of EDA, PADCO and City Council members.
Projects to be financed may include but are not limited to:
- Acquisition and development of land, easements and right-of-ways
- Construction, conversion, enlargement, repairs or modernization of buildings (including façade repairs), plants, machinery, equipment, access streets and roads, parking areas, utilities and pollution control and abatement facilities
- Loans for start-up operating costs and working capital
- Technical assistance for private business enterprises
Applicants must operate their business within Plainview or up to three miles outside Plainview city limits. Applicants must be U.S. citizens or legally registered aliens. Applicants must not have any delinquent debt with federal, state, county or local government.
Loan amounts will vary depending on the type of project, but up to $50,000 is available for projects that create or retain at least five jobs (with thorough documentation of imminent job loss), or $10,000 for every job created or retained for loans over $10,000.
Up to $10,000 is available for energy efficiency measures. Maximum – $50,000; minimum – $1,500. Lesser amounts will be considered.
Next Generation loans cannot be used to pay off existing debt. If a borrower relocates outside the Plainview area, they may be required to pay off the balance of their loan immediately.
Loans are evaluated on a point basis with more points given for projects that:
- create or retain jobs;
- use local labor and products whenever possible;
- employ low-income, minority and/or disabled persons;
- incorporate energy-efficiency measures into facility; and
- renovate or remodel a downtown store façade.
A Next Generation loan is a direct loan that requires collateral that may include personal assets adequate to safeguard the lender. Personal guarantees are required for all projects.
The EDA takes a first-security interest in assets that are financed through this loan program. If the EDA is in partnership with another lending source, the EDA will take a subordinate interest.
Next Generation Loans are offered at 3% interest. The repayment period is typically seven years, unless otherwise negotiated.