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 that are often owned and operated by minorities or women. 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 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 if you need help. The Small Business Administration provides an excellent start through their on-line site www.sba.com.

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 possibilty of an adjustment after five years.

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. Borrowers also typically pay appropriate legal fees. To help you with understanding fees a Rural Venture Fund loan officer will explain closing costs to you.

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.

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. Upon receipt of your 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 approval.