Economic Development Loan Fund – Tennessee Valley Authority

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Quick Reference

Areas Served: Statewide Alabama

The TVA Economic Development Loan Fund is a multimillion dollar revolving loan program established to stimulate industrial development and leverage capital investment in the TVA power service area.

TVA uses the fund to promote economic expansion, encourage job creation and foster the increased sale of electricity by TVA and its power distributors.

Use of Funds – New industrial plants – Plant expansions – Plant retention – Infrastructure development, e.

g.

, speculative industrial buildings and industrial parks – A limited number of other loans TVA funds should be used for the acquisition of fixed assets.

Limits – Maximum loan amounts vary according to type of project.

No TVA loan is likely to exceed $2 million.

Eligibility – Loans are made to TVA power customers, communities or nonprofit economic development corporations to support approved projects – Loans are evaluated based upon a project’s financial viability, management quality, community economic impact, funds leveraged, and increased power sales – Each TVA dollar invested should leverage additional funding from other sources Generally, a minimum of one job should be created or retained for every $5,000 invested by TVA.

Loans are typically below market rate, with specific rates to be determined on a case by case basis after considering the loan evaluation criteria.

Maximum length of terms is 10 years for new plants, plant expansion and plant retention loans, seven years for service industry loans, and six years for infrastructure loans.

Repayment schedules will be determined on a project by project basis.

Loan requests should be submitted through the nearest TVA Economic Development Regional Office.

Once the regional office completes an initial assessment, loan requests are reviewed by TVA Economic Development’s Loan Review Team.

After a decision is reached, notification is provided through the regional office.

Contact Information

Address: 225 Church Street
City: Huntsville
State: Alabama

Website: http://www.huntsvillealabamausa.com/index.php?option=com_content&view=article&id=59&Itemid=205

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