Over 10 years ago, Washington County established the Impact Revolving Loan Fund (RLF) to create more prosperity for the county and its residents. Washington County’s RLF makes loans to help fast-growing businesses located anywhere in the county as well as businesses looking to relocate to the county. Businesses leverage the Impact RLF to achieve a number of growth plans, from a new facility to upgrading employee skills.
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Loan Servicing
After a loan is closed, our relationship with the Borrower does not end. We remain in contact to service the loan. Each Impact RLF Loan is structured differently to fit the needs of the deal so there is a bit of variation in what servicing entails for each loan Borrower. Servicing requirements are specified in the Loan Agreement and are in place to allow EDWC to monitor the business’ financial health for any conditions or circumstances that could impair repayment. Documents submitted by the Borrowers often includes:
- Quarterly internally prepared and certified financial statements
- Annual financial statements or tax returns
- Annual signed copies of individual tax returns for each owner over 20%
- Certificates for all applicable insurance policies
- Employee counts to measure job creation and retention
Performance Audits
In recent years, EDWC also began conducting Performance Audits once Borrowers complete the “Performance Period” (typically 3 years). This requires Borrowers to submit documentation evidencing the status of the “Targets” set as stated in the agreed “Performance Scorecard”. These “Targets” can include things such as job creation, annual payroll, sales tax generated, investments in property or equipment, and other metrics that contribute to the “public purpose” of the loan.
Each Borrower receives an email after their loan closing with a secure link to upload their documents to. Each quarter, EDWC staff will send out servicing reminder emails instructing Borrowers what documents need to be provided. Our staff are always available to answer questions or discuss solutions for businesses struggling to submit documents within the set time parameters. Communication is key throughout the servicing process, which lasts for the life of the loan.
The Impact of RLF Loans for Washington County Businesses
EDWC staff love to see the impact of the loans we put together. Groundbreaking ceremonies and grand openings are always a highlight of our work and the perfect chance to celebrate our customers’ success. After these first major milestones, we aim to visit customers’ facilities once a year to check in on their projects, address any questions, and help solve problems they may be facing. During the site visits, we hope to tour the facility and meet with key staff members. We are always eager to learn about new projects the companies are undertaking and how EDWC might be able to help them fully capitalize on their growth potential.
If you would like to learn more the Washington County Impact Loan Fund and how we can help you realize your business growth plans, get in touch today.
