Economic Diversification Loan (EDL) Program

The goal of the Economic Diversification Loan (EDL) program is to diversify a local community's economy. The EDL program is designed to help businesses establish and expand operations. The EDL program is a low interest loan program that may be able to finance a portion of the costs of these improvements.

Eligible Applicants

Eligible applicants include existing businesses that have a comprehensive business plan that fully describes the proposed project.

Note: If you do not currently have a business plan, Commerce's Early Planning Grant program may be able to provide you with a grant to develop a comprehensive business plan.

Eligible Activities

Eligible Project Costs are limited to fixed asset financing. Examples of Eligible Project Costs include:

• Land
  
• New Construction
  
• Remodeling
  
• Furniture & Fixtures
  
• Equipment
  

Note: Refinancing is not an eligible activity.

Match Requirement

Applicants will be required to provide a cash match of at least 25% of the Eligible Project Costs.

Funding Availability

Although applicants can receive 75% of Eligible Project Costs, the actual award amount, if any, is based upon an analysis of the following factors:

• Project Viability-
  Does the applicant have the experience and capital necessary to complete the proposed project successfully?

• Jobs-
  How many jobs will be created or retained? What is the wage rate and benefit package?

• Economic Impact-
  To what extent will the proposed project diversify the economy of the local community?


• Community Benefit-
  Will there be a positive economic impact upon the local community?

THE APPLICATION PROCESS

The Economic Diversification Loan program application process involves four steps:

1. Interested applicants must first talk with one of COMMERCE'S Area Development Managers who will discuss the project with the applicant, provide a copy of the application material and identify other programs that could potentially assist the applicant.
   
   
2. The applicant will complete the application material and submit it to COMMERCE for review.
   
   
3. The application will be evaluated by a Review Committee.
   
   
4. The Review Committee will make a funding recommendation to COMMERCE's Office of the Secretary. The Secretary's Office will:

Note: Costs incurred prior to the date the project is approved by the Secretary's Office are not eligible.

Business Information

Businesses must have a comprehensive business plan that includes the following:

• Background information on the company.
• A description of the project.
• A detailed project budget.
• Information on employment levels, wages and benefits. Both existing and projected (3 yrs.)
• A project timeline.
• Balance sheet, profit and loss, and cash flow statements for the last three fiscal years (Tax returns are acceptable).