Frequently Asked Questions

How is the Rural Venture Fund different from a bank?
ECCDI is a nonprofit community based lender who works exclusively with rural based small businesses. We specialize in loans which are not generally available from a conventional bank. While we are willing to assume more risk than a traditional lender, we expect to be repaid. We, therefore, evaluate a business using many of the same techniques used by most financial analysts.

Will you finance any type of business?
ECCDI is interested in financing businesses that create meaningful jobs and will generally finance any business that meets our credit criteria.

Do you provide 100% financing?
No. ECCDI expects a borrower to make an investment in their business and be at risk to the same degree that we are as a lender. We require collateral as well as personal guarantees and the assignment of life insurance on the borrowers in the full amount of the loan.

Do I need a business plan?
Yes, ECCDI requires a written business plan from any borrower. There are a number of resources to obtain help in preparing a plan. The Small Business Administration provides an excellent start through their on-line site www.sba.com.

How much money can my business get?
ECCDI, through the USDA Intermediary Lending Program can lend up to $250,000. ECCDI can help facilitate a loan guarantee of up to $10,000,000 using the USDA Business and Industry (B&I) Guaranteed Loan Program.

What is your interest rate?
ECCDI bases its rates on prevailing market rates at the time of the loan and the degree of risk. Generally, loans are fixed at prime or less than prime. Currently loans from $175,000 to $250,000 are underwritten based on a 15-year amortization with a possibility of an adjustment after five years. The larger B&I guaranteed loans are assessed on a case by case basis, but generally have more standard relending rates on a par with conventional lenders.

What information must I provide?
ECCDI needs to know how you plan to use your loan proceeds along with a copy of your business plan, company and signed personal financial statements, copies of your last two personal Federal and State income tax filings, and resumes of key personnel involved with your company.

What fees will I have to pay?
For small business loans there is a non-refundable $1500 application fee. There is an origination fee of 1.5% on loans. Appraisals by an appraiser designated by ECCDI are required on all loans secured by real estate at the borrower’s expense. IRP and B&I loan fees can be explained in more detail by a Rural Venture Fund loan officer. Borrowers also typically pay appropriate legal fees.

How long will it take to receive a loan?
This depends on the size and complexity of the loan. What often delays the decision making process is obtaining the required information from the borrower. Typically, the underwriting and due diligence process takes six to eight weeks.

How do I get started?
Interested persons can call the Rural Venture Fund at 252-504-3996 and ask to speak with a lending officer.

A pre application may be given to you by the loan officer at this time. Upon receipt of your pre-application we will conduct our preliminary review and arrange for a personal interview. At this meeting we will review your documentation with you and clarify any credit issues that may exist. The next step is to submit your application to the ECCDI loan committee for their approval. The final step is to submit to USDA Rural Development for their review and approval.