The Lake Country Development Corporation (LCDC) is a non-profit 501 (c)(3) organized in 1981 that provides low-interest financing for local economic development needs through two revolving load funds from the Economic Development Administration and USDA Rural Development. The funds are for the establishment of new industries, assistance for existing locally-based industries, innovative and job-creating economic uses and activities, and to fill a gap in the existing local financial market in the Virginia counties of Brunswick, Halifax and Mecklenburg. LCDC has closed 67 loans resulting in the retention of 144 jobs and the creation of 1,858 jobs. Over $10 million in revolving loan funds has been leveraged with over $11 million in local match or other public funding and over $48 million in private funding or new equity resulting in a leveraging ratio of five private dollars to one federal dollar.
Loan Amount - $50,000 - $250,000
Uses of Funds
- Purchase of land, buildings, machinery and equipment
- Land improvements
- Renovation or major additions to existing buildings
- Construction of new buildings
- Working Capital
- Working Capital - five years
- Working Capital Loans - The applicant will have existing new working capital (current assets will exceed current liabilities) of at least 15% of the applicant's total working capital needs.
- Fixed Asset Loans - Up to 25 years, depending on the life of the assets financed
- Fixed Asset Loans - The applicant will provide in the form of equity a minimum of 15% of the total cost of the project.
- No revolving fund loan will cover more than 75% of the total project costs, nor, except in unusual circumstances, will a loan constitute 100% of the debt-financed portion of a project. It is the general policy of LCDC to loan the minimum amount needed to elicit financing from other sources, in order to assist projects that would not otherwise be financed.
Interest - 3% below the Prime Rate. No less than 5%.