RBEG

RBEG

The RBEG Loan Program:
Are you thinking about starting a small business or expanding your existing small business?  Help is available from the Human Services, Inc. Revolving Loan Fund, which was launched in 2010.

The program’s funding sources are:

·         Rural Business Enterprise Grant: U.S. Department of Agriculture Rural Development Office.

·         Heritage Fund – the Community Foundation of Bartholomew County.

·         MainSource Bank. 
 

Job creation is the priority of the program, which has active loans throughout H.S.I.’s service area of Bartholomew, Decatur, Jackson, Johnson and Shelby counties.

Among the requirements of loan applicants:

  • A rejection letter from a traditional lending source
  • On-line training
  • Consultation with either SCORE or the Indiana Small Business Development Center
  • Collateral to cover the loan, plus a 10 percent personal equity investment
  • A Business Plan
  • Financial projections and two years’ tax returns
  • Periodic reports on employment and financial performance

The RBEG  program targets economic development and job creation  in rural areas. Parts of Johnson County do not qualify as "rural,” but residents might  qualify for a BEED loan. (See accompanying BEED article).

The loans, which are 5 percent interest over five years, are for purchasing equipment or vehicles, inventory, outfitting a shop or workspace, start-up expenses – or other expenses that would lead to creation of a job. Loan maximums are $7,500 for a start-up and $20,000 for an existing business. Amount of loans will vary according to the amount of "revolved” funds available.
The loans are not intended for payroll, cash flow, refinancing existing debt or general monthly overhead. Ineligible enterprises include those dealing with political or religious activities, real estate, investment, gambling or those that might be considered offensive to community standards.

The program is funded by the USDA Rural Development Office and Heritage Fund – the Community Foundation of Bartholomew County and MainSource Bank.
About the Revolving Loan Fund:
Who is eligible?
The RBEG program focuses on micro-businesses of up to 50 employees.  Large portions of Johnson County do not qualify as "rural.” Those potential clients should check first: they may be in an eligible area, or they may qualify for a BEED loan.
What’s available?
Maximum loans are $7,500 for a start-up business; $20,000 for expansion.

What are the terms?
Terms depend on the individual loan and amount, but generally the interest rate will be 5 percent and the term is five years. Collateral is required and each loan applicant must have a 10 percent equity investment in the loan.

Are there other requirements?
All Human Services, Inc. programs stress self-sufficiency elements. The Revolving Loan Fund requires mentoring and on-line class work before loans are considered.

What are the mentoring requirements?

Mentoring is available in our five counties from two sources at no charge:
SCORE: the Service Corp of Retired Executives.
  • Indiana Small Business Development Center: Advisors who are assigned to each county and available for consultation.

Additionally, Human Services, Inc.’s loan fund manager will advise applicants throughout the process.

What are the training requirements?
Training comes in two parts:

  • Personal  finances:  refresher information on budgeting, planning, savings, managing money, credit and other basics available on MoneyManagement.org
  • Business Finance: on-line courses on soinbiz.com (Southern Indiana Business) covering starting a business, accounting, marketing and the business plan.

Are there other requirements?
Successful applicants will be expected to provide follow-up reports quarterly on the progress of their enterprise and the number of employees hired.

How can I get additional information?
Contact the H.S.I. Loan Fund manager at 1-800-296-8026. 

We Are Proud To Be Supported By:
  • The United Way of Jackson County
  • The United Way of Johnson County
  • The United Way of Bartholomew County
  • The Decatur County Community Foundation
  • The United Fund of Decatur County
  • Heritage Fund Community Foundation of Bartholomew County
  • SCUFFY
  • Brown County Community Foundation
  • Community Foundation Of Jackson County
  • Community Foundation Of Jackson County
  • Centra Foundation