The Appalachian Loan Fund (ALF) is a local source of financing for businesses whose projects will result in the creation or retention of full-time jobs for every $40,000 of ALF funds borrowed. 

These funds are a source of low cost, subordinate, fixed rate financing for businesses whose projects will result in the creation or retention of permanent full-time jobs.  The ALF partners with a lender to provide loan assistance to businesses located in Anderson, Cherokee, Greenville, Oconee, Pickens, and Spartanburg counties.  The ADC can also provide a direct loan in some cases. Funds can be used for fixed assets such as real estate and equipment, working capital, and leasehold improvements. These revolving loan funds were awarded to the ADC from The Appalachian Regional Commission (ARC), the South Carolina Appalachian Council of Governments (SCACOG), and from the SCACOG via the South Carolina Budget and Control Board for relending to eligible borrowers.

Why consider the ALF:

  • Typically less equity required than with conventional financing
  • Fixed rate financing for the ALF loan
  • Longer term of the ALF loan may improve cash flow
ALF Guidelines

  • Minimum of 10% equity contribution for existing business and 20% for a start up
  • ALF loan will not exceed $400,000 (40% of project) and generally, not less than $100,000
  • Typical maximum terms: Working capital – 5 years, Equipment – 10 years & Real estate – 20 years
  • Commitment fee of 1% which is applied to the loan origination fee of 1.5%
  • Nonrefundable loan application fee of $500
  • Each loan must be secured as determined by the ADC with business and/or personal assets
  • Collateral assignment of key person life insurance may be required
  • Personal guaranties will be required of all principals owning 20% or more of the business
  • Within 2 years after loan closing, the business must have created or retained 1 full-time job per $40,000 of loan funds borrowed

Application Forms