Rural Enterprise Reporter
Direct Loan Program Grew Significantly this
Demand for direct loans to REAP
members passed the half-million dollar mark and show no signs of
tapering off anytime soon.
REAP Direct Loan Program
had an excellent year in Fiscal Year 2004. REAP saw in 1998 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 Peer Loans. As a result, the REAP Direct Loan Program was created.
The REAP Direct Loan Program became a permanent part of REAP in 2000. In the past fiscal year, REAP placed 38 Direct Loans totaling $514,900. These loans and extensive client technical assistance also leveraged over $640,900 in additional debt financing from traditional lenders, other revolving loan funds, and private sources during this time. Since inception of the Direct Loans, REAP has placed 139 Direct Loans totaling $1,948,408.
The REAP Direct Loan Program is helping to leverage other funds. As part of REAP’s technical assistance services, REAP provides business planning services to REAP members. These services have resulted in leveraged lending in many instances.
Often a REAP client has completed her or his business plan in consultation with the area REAP Business Specialist and has been able to secure loans 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 in addition to REAP’s loan fund. Historically, REAP has “leveraged” loans totaling $4,009,820. REAP continues to be extremely satisfied with the performance of these loans. Microbusinesses have microloan needs as small as $100 to as large as $25,000 or more.
It has always been REAP’s 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 effectively.
REAP looks forward to adding additional lending products to our current product mix in the future. The current REAP lending products (REAP Direct, Peer, and Quick Grow) can be viewed online:
Contact: Jeff Reynolds, REAP
Program Director at 402.645.3296 or firstname.lastname@example.org
for more information.