Rural Enterprise Reporter
Direct Loan Program Grows
Demand for direct loans to REAP
members continues to surpass previous records.
REAP Direct Loan Program
had a record year in FY 2003. In 1998 we saw the need to serve
businesses that had used the REAP Peer Loan Program but had
grown beyond those loan levels. REAP also had new
microentrepreneurs with needs beyond those that could be met by
The REAP Direct Loan Program became permanent in 2000. In the
past fiscal year, REAP placed 38 direct loans totaling $577,663.
These loans and extensive client technical assistance also
leveraged over $907,160 in additional debt financing from
traditional lenders, other revolving loan funds, and private
sources. Since inception, REAP has placed 101 direct loans
The REAP Direct Loan Program is helping to leverage other funds.
As part of our technical assistance services, we provide
business planning services to REAP members. These services have
resulted in leveraged lending.
In many cases a REAP client completed their business plan in
consultation with their area REAP Business Specialist and has
secured a loan from a traditional lender, development district,
community action agency, or a local loan fund.
REAP staff have also helped in “packaging” loans that include
other lenders. Since 2000, REAP has generated 68 “leveraged”
loans totaling $2,909,420.
We continue to be extremely satisfied with the performance of
these loans. Microbusinesses have lending needs as small as $100
to as large as $25,000 or more.
It has always been our goal to meet the debt financing needs of
all members – individually or by collaborating with partners.
The REAP Direct Loan Program is meeting this need most