The Appalachian Loan Fund (ALF) is a locally controlled source of financing for businesses whose projects will result in the creation or retention of permanent full-time jobs for every $25,000 of ALF funds borrowed. 

The Appalachian Loan Fund (ALF) is a locally controlled 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 leverages third party lender investment (usually a bank or credit union) to provide loan assistance. The ALF is a revolving loan fund, so as loans are repaid, these funds once again become available to relend in the community. ALF loans are available to qualified businesses in Abbeville, Anderson, Cherokee, Fairfield, Greenville, Greenwood, Laurens, McCormick, Newberry, Oconee, Pickens, Spartanburg, and Union Counties. ALF funds can be used to finance land, building, machinery, equipment and working capital.

Why consider the ALF:

  • reduced equity requirement
  • fixed rate financing for a portion of the loan
  • longer term offered by the ALF can improve cash flow
  • limits the risk of the primary lender
  • lender can obtain Community Reinvestment Act credit
ALF Guidelines

  • Must involve private sector investment
  • Minimum of 10% equity contribution for existing business and 20% for a start up
  • ALF loan will not exceed $200,000 (40% of project), nor be for less than $50,000
  • Interest rates are normally fixed
  • Typical maximum terms: Working capital – 3 years, Equipment – 7 years & Real estate – 15 years
  • Commitment fee of 1% which is applied to the loan origination fee of 1.5% payable at closing
  • Nonrefundable loan application fee of $500
  • Applicant pays all closing costs
  • Each loan must be secured as determined by the ADC with business and/or personal assets
  • Collateral assignment of key person life insurance
  • Personal guaranties will be required of all principals owning 20% or more of the business
  • Must create or retain 1 full time job per $25,000 of loan within 2 years of loan closing

Download Application Files

SUBMIT APPLICATION FILES