Salt Lake County Economic Development Revolving Loan Fund (EDRLF)
The Economic Development Revolving Loan Fund (EDRLF) originally started 25 years ago with two million dollars from Community Development Block Grant (CDBG) funds, provided by the U.S. Department of Housing & Urban Development (HUD), and it was used for traditional small business development.
In 2005, the EDRLF Board realigned priorities to strategically align with economic development targets and needs. New funding partners were brought on board to grow the fund. This allowed the board to expand and include more financial industry experts. The management procedures were enhanced to better drive job creation, risk mitigation, capital preservation and return on investment.
The EDRLF is successful because it fills a gap in economic development by lending to high-tech and manufacturing businesses that would not otherwise be eligible for a traditional bank loan yet have a strong potential for growth. Loans are considered a bridge loan and not meant to be long-term financing.
Loan fund program requirements are well matched to the Community Reinvestment Requirements for the new financial institution partners. These include:
- Job Creation
- Jobs available to individuals that are Low- to Moderate Income; and
- Those that provide economic benefit in targeted service areas
The loan fund is managed by a qualified, experienced third party non-profit agency to ensure compliance in underwriting, reporting, and loan management.
- Created over 500 new jobs
- Alumni Companies have generated over $17 Million Annually
- 0% Loan Loss
- Loan Amount: Up to $400,000
- Loan Terms: 3, 4, and 5 years
- Interest Rates: 12% for 3 years; 14% for 4 years; and 16% for 5 years
- Businesses are generally in the high-tech industry or manufacturing
- Businesses must create at least 1 job for each $35,000 borrowed
- Businesses must be located in the Urban County area, including: Unincorporated Salt Lake County, Metro Townships, Town of Alta, Bluffdale, Cottonwood Heights, Draper, Herriman, Holladay, Midvale, Millcreek City, Riverton, and South Salt Lake
View CDBG Eligibility Map
The County is looking to expand the eligible areas to include the entire County by blending general fund dollars and partnering with other jurisdictions for funding participation
- Loan Credit Committee
- Advisory Committee