September 2008  Issue No. 26                    REAP HOME PAGE         A publication of the Center for Rural Affairs

Rural Enterprise Reporter

Lending Update:
Over $440,000 in Approved Loans Proves Success of REAP Lending

REAP loan programming was exceptional the past year. We placed 46 loans totaling $444,591 in fiscal year 2008. Of this total, one $2,000 loan was placed through the Quick Grow loan program, 24 loans totaling $99,841 were placed with the REAP Rapid Loan product, and 21 loans totaling $342,750 were placed through the REAP Direct lending program.

Our business planning services often result in substantial leveraged lending. For example, a REAP client will complete a business plan in consultation with an area REAP business specialist, and will then be able to secure a loan from a traditional lender, development district, community action agency, or a local loan fund.

REAP staff have also helped “package” loans with other lenders in addition to our own loan fund. We leveraged over $673,000 in the past year due to REAP assistance. Historically, our “leveraged” loans total $9,491,405.

In 1998 we created the REAP Direct Loan Program to service REAP members whose financial needs had outgrown our Peer loan program. It became a permanent part of REAP in 2000.

The Quick Grow Loan program began in 2002 as a collaborative effort between REAP and GROW Nebraska. It was developed exclusively for use by GROW Nebraska clients. The Quick Grow Loan has a $5,000 maximum limit, can be used for startup and existing businesses, and has an easy borrower application process and a quick turn around.

In 2005 we introduced the REAP Online Lending System. It includes a user friendly web-based micro loan application. The REAP Rapid Loan was introduced at the same time. The Rapid Loan is a micro loan with a $5,000 maximum limit and an online application. The application also serves as a 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.

We look forward to adding additional lending products to our mix in the future.

REAP lending products can be viewed online: http://www.cfra.org/reap/loan_programs.htm

Rural Enterprise Reporter Menu  (main)

About REAP  | Contact Us | Business Assistance | Women's Business Center
Loan Programs | Newsletter | REAP Directory | Resources |
Calendar

 
Key Funding and Support
 
Center for Rural Affairs -- Rural Enterprise Assistance Project
145 Main St.    PO Box 136    Lyons, Nebraska  68038
Voice:  (402) 687-2100       FAX:  (402) 687-2200      E-Mail: REAPinfo@cfra.org