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.  These funds can be used for fixed assets such as real estate and equipment, working capital, and leasehold improvements.

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
  • Applicant pays 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 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

SUBMIT APPLICATION FORMS