The Appalachian Loan Fund (ALF) is a locally controlled source of low cost, long term; fixed rate financing for businesses whose projects will result in the creation of permanent full time jobs, and leverage private sector investment. As the ALF borrowers repay their loans, the payments increase the fund for relending to other businesses for additional job creation and investment. The Appalachian ALF is a loan pool capitalized by grants from the Appalachian Regional Commission, the State of South Carolina, and from borrowings from the US Department of Agriculture. Loans are available for small to medium size businesses in Anderson, Cherokee, Greenville, Oconee, Pickens, and Spartanburg Counties. The ALF is administered by the Appalachian Development Corporation, a private non-profit corporation equal opportunity lender.

No. The Appalachian ALF will complement lending activities of commercial banks. The ALF is designed to provide "gap financing." The ALF can fill the gap between what a financial institution can lend on a project and what the business can provide in equity. ALF loans will generally assume a subordinate position to the private lender.

ALF funds can be used to finance fixed assets such as land, building, machinery, equipment, real property improvements, etc. Working capital loans are also available. Refinancing of existing debt is not eligible.

The ALF program can assist manufacturing, industrial, service, and some retail firms. Restaurants and similar retail food-related firms are not eligible. Projects financed with ALF dollars must create at least one job per $25,000 in ALF funds loaned. At least 50 percent of the project cost must come from private sources. The business must contribute at least 10 percent of the project cost in equity.

For you as a business owner/borrower, the ALF can finance a portion of your project at a below market interest rate and reduce you initial equity contribution. It improves the borrower's relationship with his financial institution as it reduces the borrowers risk with the financial institution. With the flexible terms of the ALF working with the financial institution an attractive financing package can be offered the borrower.

Business start-up or expansion must result in the creation or retention of permanent jobs.

The ALF loan must leverage private sector investment, either loans or equity.

The business/borrower must contribute at least 10 percent of the project cost in equity.

Generally, ALF loans will not exceed $200,000, nor be for less than $20,000.

The maximum loan term for fixed assets is 15 years, - 5 years for working capital.

Interest rates are normally fixed but can be variable if both borrower and lender agree.

Interest rates will normally be less than market or prime rate with comparable repayment terms.

There is a loan origination fee payable at closing, and borrower is responsible for all closing costs.

The borrower must show that their business will generate sufficient cash flow to repay the debt being requested.

Each loan must be adequately collateralized with business or personal assets.

Personal guaranties will be required of all principals owning 20% or more of the business.

The business and principals must be credit worthy and meet the under writing guidelines of the ALF.

ALF loans may not be used for the relocation of a business from one state to another.

Compliance with Federal Non-Relocation, Civil Rights and other Federal regulations is required.

Businesses must complete an ALF application to be considered.