For fast-growing Washington County businesses or businesses looking to relocate to Washington County, a loan from the Washington County Impact Revolving Loan Fund (RLF) may be the key to getting your financing deal across the finish line. We’re answering common questions about how this subordinate financing program works.

What is EDWC’s subordinate financing program?

Loans made from the Washington County Impact Revolving Loan Fund (RLF) managed by EDWC take a collateral position behind the primary lender in a transaction. The funds for the RLF came directly from the County itself, not federal or state programs. This allows EDWC to be creative and innovative when developing the terms and conditions of a loan and reaching a determination about the collateral needed to make a deal work. Our targeted end-users are fast-growing Washington County businesses or businesses looking to relocate to Washington County.  EDWC also makes limited loans to start-ups and developers, as well as for the remediation of Brownfields.

While subordinate business financing is often more expensive than traditional lending, in the case of the Washington County Impact RLF, the rates are incentivized to support companies’ plans for growth and/or expansion. That means that in nearly all cases the rates are lower than those available from a primary lender and often under Prime Rate.

View RLF Success Stories:

When should you contact EDWC about a transaction?

To increase the likelihood of achieving a win-win-win solution for lender, borrower, and Washington County, reach out to EDWC as early in the lending process as possible. The sooner that we can determine that EDWC’s involvement will positively impact a project, the greater the chances of success for the deal.

We will want to understand the general structure of the transaction, what financing is being considered and how the project fits within our mission of creating greater prosperity in Washington County.  Based on a brief conversation, we can determine if subordinate financing might be a suitable solution for your transaction. As the next step, we will work to uncover what loan terms and conditions would be beneficial for all involved parties in the deal.

We can also be a value-add on prospect calls. Lenders who showcase their willingness to think outside the box by offering alternatives and options that others may not have considered, may have the inside track in securing a deal. Call us to discuss the circumstances leading to your invitation to join in on call, so we can decide how best to partner.

Some commercial lenders refer clients directly to EDWC when they see an opportunity to include subordinate funds in a loan transaction.  We love to work directly with clients, as well, so that they understand the value we can add to a transaction and flexible terms we can offer.

How will underwriters react to including a subordinate lender in your deal?

Many Washington County area banks, lenders and underwriters are already familiar with EDWC’s subordinate financing and often consider these funds as equity when analyzing a loan request. We are always happy to educate individuals involved in the loan approval process about how EDWC works to support primary lenders in getting deals approved and closed.

What types of projects can use Washington County’s Impact Loan Fund financing?

There are as many ways to use EDWC’s subordinate financing, as there are for using a primary loan’s funding. Below is a short list of the most common ways that lenders and their clients use a loan through EDWC:

  • Purchase or build a new facility;
  • Remodel, reconfigure or expand an existing building;
  • Buy a Washington County business to retain local ownership;
  • Purchase additional, new or more advanced equipment;
  • Train and develop employees for future growth and expansion;
  • Brownfield Redevelopment.

Why incorporate a Washington County’s Impact Loan in the financing of a project?

Including EDWC’s subordinate financing when building capital stacks for business projects can improve cash flow, reduce lender risk and create deals that get approved and closed. Additionally, in today’s uncertain economic times, an RLF loan through EDWC can allow a business to preserve more of its working capital to address unforeseen company cash needs or to meet cash reserve requirements.

Subordinate funding through the Washington County Impact RLF is readily available in amounts from as little as $150,000 up to $1,000,000, and, in special circumstances, even more.

Washington County Impact RLF loans offer notes and amortizations for the full term of the loan. Terms range from 3-25 years and there are often no pre-payment penalties. Rates are fixed for a minimum of five years, with rate adjustments generally every 5 years throughout the term of the note.

Who should you contact at EDWC with questions, more info or to set up an appointment?

Sherry Saiki is EDWC’s Senior Director of Business Finance and is happy to take calls related to leads on deals or opportunities to participate with lenders in funding projects in the County. Reach out to her directly at 262-335-5850 or via email at