Appalachian Development Corporation is an approved originator for the B&I Loan Program. The ADC works with local lenders to provide loans for areas outside the boundaries of cities of 50,000 or more in population and adjacent urbanized areas, with a population density of no more than 100 persons per square mile. Priority is given to communities of 25,000 of less. ADC can make loans up to $7,500,000 with an RBS guaranty. The B&I Program can provide guarantees up to an 80% for loans of $5 million or less, and 70% for loans between $5 million and $10 million.

No. The ADC takes referrals from Financial Institutions for projects and works with the Financial Institutions to structure using the program to get projects funded.

The B&I loans can be used for fixed asset financing, equipment financing, debt financing and working capital financing. Loans are made up to a maximum of 20 years for land and building purposes, 15 years maximum, or useable life of equipment, and 7 years for working capital.

The program can assist manufacturing, industrial, service, warehousing and retail firms. Projects must create or retain jobs.

Projects must create or retain jobs.

Borrowers are required to have a minimum of 10% "tangible balance sheet equity" for existing businesses, or 20% balance sheet equity for start-ups.

Interest Rates are normally variable based on the term and market.

Normally a 2% origination fee will be charged from which the 2% guarantee fee for the RBS portion of the loan will be paid. A 1/4 of 1% fee will be charged and paid annually RBS to renew the guarantee for the life of the loan.

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

Each loan must be adequately collateralized with business or personal assets and meet USDA collateral requirements.

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

The business and principals must meet the credit standards of the lender.

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