The Department of Governmental Services assists local governments, businesses and industries in obtaining the necessary infrastructure, and/or financing for the creation or retention of jobs in the five county region. The department works closely with numerous agencies to secure the necessary funding for economic development projects including: Alabama Department of Economic and Community Affairs, Appalachian Regional Commission, Economic Development Administration, Small Business Administration, Rural Development and others.
Revolving Loan Program
The NACOLG Revolving Loan Program is an important economic development tool consisting of locally controlled capital being used to finance new or expanding businesses to create or retain jobs. The program targets small to medium sized businesses and small manufacturing companies.
RLF Funds can:
- Purchase land or buildings
- Construct or renovate buildings
- Purchase equipment and machinery
- Provide working capital
Interest rates on RLF loans are below prime and determined by project need for up to 1/3 of the total project cost. RLF complements local banking efforts due to the fact that it provides "gap" financing or a secondary source of funds.
Locally controlled, the Revolving Loan fund is governed by NACOLG's Loan Administration Committee -- a group of representatives from Colbert, Franklin, Lauderdale, Marion and Winston Counties.
- Loan results in creation of jobs
- Equity injected by business
- Loans range: $10,000 - 125,000
- Terms ranging: 5-15 years
- Provide personal guarantees
- Generate cash flow to repay debt
- Provide insurance for loss payee
- Be located in NACOLG region
- Borrower pays legal costs and application fees