Rural Enterprise Reporter
Lending Has an Exceptional Year Helping
REAP loaned $685,675
last year and leveraged over $1.3 million in small business capital through
cooperation with other lenders
Lending Program had an exceptional year in Fiscal Year 2007. REAP placed 52 loans totaling $685,675. Of this total, 24 loans totaling $94,475 were placed with the REAP Rapid Loan product, and 28 loans totaling $591,200 were placed through the REAP Direct lending program.
We are proud of the fact that REAP lending is helping to leverage other funds in a substantial way. As part of REAP’s technical assistance services, the staff provides business planning services to members.
These services have resulted in leveraged lending in many instances. Often a REAP client will complete their business plan in consultation with their area REAP Business Specialist, and then will secure 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. REAP leveraged over $1.3 million this past year due to REAP assistance. Historically, REAP has “leveraged” loans totaling $8,366,155.
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 micro entrepreneurs with needs beyond those that could be met by the smaller 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 fall of 2005, REAP introduced the REAP Online Lending System. The system includes a web based micro-loan application that is user friendly. In conjunction with the unveiling of this new system, REAP introduced a new loan product called the REAP Rapid Loan.
The Rapid Loan is a micro loan with a $5,000 maximum limit that uses the online application. The online lending system application also serves as the pre-application for a REAP Direct Loan above $10,000 and up to $35,000.
It has always been REAP’s goal to meet the debt financing needs of startup and existing micro entrepreneurs in rural Nebraska – individually or by collaborating with partners. The REAP Lending Program is meeting this need most effectively. REAP looks forward to adding additional lending products to our current product mix in the future.
Contact: Jeff Reynolds, REAP
Program Director at 402.656.3091 or email@example.com
for more information.