Next up in our article series: The Definitive Guide to Revolving Loan Funds, we are tackling the top 5 myths surrounding the Washington County, Wisconsin RLF. We look at misconceptions about qualifying for, getting approved for and repaying a loan.
MYTH #1: Your financial information and plans become public knowledge when you obtain an RLF loan.
When partnering with EDWC to qualify for a RLF loan, your business and personal information remain confidential. EDWC acts as the administrator of the loan fund meaning all proprietary information remains in-house and are not shared without your permission. Your financial information, business plans and proprietary secrets:
- Are not shared with any governmental entity
- Do not become public record
- Cannot be obtained through an open-records request
- Stay within the control of EDWC
It is important to note, while all company details and financials remain confidential, obtaining a loan from Washington County is public record.
MYTH #2: Very little information needs to be provided to acquire a loan.
Just like a financial institution that makes business loans, EDWC gathers both personal and business information to use in the decision-making process. As part of the decision-making process, financial and legal reviews are completed to verify both personal and business validity. The gathering of personal and corporate tax returns, Personal Financial Statements, and projections for the business, based on the growth anticipated in the loan request help tell the story of your project.
Consider EDWC a partner for your business. During the life of your loan, financial and employment information will be requested from the EDWC Servicing team. They will be your point of contact throughout and can be contacted with questions, concerns or to solicit advise.
MYTH #3: No repayment back to the Washington County Revolving Loan Fund is necessary.
RLF loans are not grants! To keep the Washington County RLF effective, borrowers are required to pay back the loan. As loans are repaid, additional dollars are available to make further loans to other businesses. In certain situations, EDWC can extend longer loan terms than those offered by some financial institutions—up to 20 or even 25 years. With a longer term, your business can make smaller, more affordable monthly payments.
MYTH #4: Any business can get financing from the Washington County Revolving Loan Fund.
EDWC focuses on making RLF loans to established businesses already located in or relocating to Washington County. To qualify, a business should be established, growing quickly and in need of support to continue that growth. This loan is not the answer if you or your company are consistently losing money, fielding calls from creditors, or facing bankruptcy.
MYTH #5: Interest rates on a RLF loan are very low or very high.
While rates offered by this loan program are often lower than those at financial institutions, we are usually within 1-2% of bank rates. The loan rates are fixed, typically for a minimum of five years from the time of disbursement of funds. Interest rates and monthly payments are shared at time of loan approval.
Learn more about the loans and incentives EDWC secures for growing businesses in or relocating to Washington County:
To discover more about the RLF and other financing options for your business, connect with one of our experts today: