Revolving Loan Fund Loans – Umatilla Electric Cooperative
Umatilla Electric’s Revolving Loan Fund Loans are available to for-profit businesses and loans to not-for-profit entities in the UEC service area of Umatilla, Morrow, and Union counties in Oregon.
Uses of UEC’s Revolving Loan Fund proceeds may be for land, fixed assets, machinery and equipment, or working capital needs.
Working capital loans will only be considered in conjunction with the purchase of other assets as previously specified.
Ineligible Uses Ineligible uses of UEC’s Revolving Loan Fund include pre-development costs, refinance of existing debts; illegal activities; legal activities that in the opinion of UEC’s Board of Directors adversely affect UEC’s Revolving Loan Fund Revolving Loan Fund interests; general improvement loans related to normal replacement needs of a business and unrelated to business expansion/job creation; and loans to projects which have alternative sources of financing at reasonable interest rates.
Loan Amounts and Supplemental Financing Requirements The minimum loan will be $5,000 and the maximum RLF loan will be $360,000. UEC’s Revolving Loan Fund projects must include a minimum of 20% funding from other sources; greater leveraging of outside resources enhance the chances for approval of an RLF loan request. Interest Rate and Fees Interest rates on UEC’s Revolving Loan Fund loans will not exceed the prevailing prime rate as published in the Wall Street Journal and will be determined based on the evaluation of ability to repay and the necessity of below-market financing to make the project happen.
Loan Terms The term of a UEC Revolving Loan Fund loan shall not exceed 10 years, and may be less than 10 years as determined by UEC’s Board.
Loan deferments of up to 2 years may be considered on a project-by-project basis.
The Loan Review Committee will make a recommendation concerning the term of the loan depending upon project need, the expected life of the security and the applicant’s ability to repay.
The term of the loan will not exceed the expected life of the asset(s) being used as collateral.