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Looking to grow your business? The UEC Revolving Loan Fund can help!

 

Umatilla Electric Cooperative (UEC) plays an active role in the development of rural communities. Through its Board and staff, UEC provides both leadership and financial participation in the economic development and business expansion of our service territory. Through the creation of a Revolving Loan Fund (RLF), UEC is seeking to improve the quality of life in rural areas by helping to leverage projects that create and retain job opportunities for rural residents; that provide technical assistance, education, or medical care to rural businesses or rural residents; that further the use of advanced telecommunications services and computer networks for medical, educational, and job training services; and that upgrade the public infrastructure to improve the economic development potential of rural areas and the health, safety and medical care of rural residents.

 

Eligibility

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Eligible projects for loans can include any business venture, governmental public body, or entities involved in a community or economic development project that promotes job creation and/or provides needed community services that benefit rural areas, including loans to for-profit businesses and loans to not-for-profit entities. Uses of UEC’s Revolving Loan Fund proceeds may be for land, fixed assets, machinery and equipment, or working capital needs. Working capital loans will only be considered in conjunction with the purchase of other assets as previously specified.

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Loan Amounts and Financing Requirements

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The minimum loan amount is $5,000 and the maximum is $360,000. UEC’s Revolving Loan Fund projects must include a minimum of 20% funding from other sources; greater leveraging of outside resources enhance the chances for approval of an RLF loan request.

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Interest Rate and Fees

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The UEC Revolving Loan Fund has a fixed interest rate of 3.5% with an annual loan servicing fee of up to 1% of the unpaid balance will be charged to help cover administrative costs of UEC’s Revolving Loan Fund. Borrowers will be charged for loan closing costs, attorney’s fees, filing fees, etc., as necessary to complete loan documentation. All loan fees will be addressed in the Loan Agreement between UEC and the loan recipient.

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Loan Terms

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The term of a UEC's Revolving Loan Fund loan shall not exceed 10 years, and may be less than 10 years as determined by UEC’s Board. Loan deferments of up to two years may be considered on a project-by-project basis. The Loan Review Committee will make a recommendation concerning the term of the loan depending upon project need, the expected life of the security, and the applicant’s ability to repay. The term of the loan will not exceed the expected life of the asset(s) being used as collateral.

 

While not mandatory requirements, the following maturities will be used as a general guideline:

Building                            10 Years

Equipment                       5 - 7 Years

Real Estate                      10 Years

Working Capital           1 - 3 Years

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Collateral

 

Loans will be collateralized, as determined necessary by UEC’s Board, to secure its participation in the project and can include, but is not limited to, mortgages, liens, letters of credit, and/or personal and corporate guarantees. Other terms and conditions may be required as determined by the UEC Board of Directors, depending upon individual circumstances, including but not limited to assignment of leases, subordination agreements, life insurance, etc.

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The loan recipient will be required to maintain appropriate insurance on all secured assets and name UEC’s Revolving Loan Fund as loss payee.

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Loan Application and Process

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Please give us a call at 541-289-3000 or email is at uecbrc@gmail.com if you have any questions.

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