Excitingly, Orange County has partnered alongside the Charlottesville-based Community Investment Collaborative (CIC), a certified Community Development Finance Institution (CDFI), to launch a Revolving Loan Fund program that will provide a flexible source of supplemental financing for businesses expanding or locating to Orange County. Utilizing American Rescue Plan Act (ARPA) funds, the program was created to assist businesses responding to impacts from the COVID-19 pandemic, and the CIC will help Orange County Economic Development administer the Fund, which will be the first of its kind available to Orange County businesses and offer individual loans up to $20,000.
“The Orange County Revolving Loan Fund will provide affordable loans to the business community and help get additional support to more Orange County businesses as the community continues to recover from impacts associated with the coronavirus pandemic.” – Rose Deal, Economic Development Director, Orange County
“We’re excited to launch this new partnership with Orange County and to assist Orange County entrepreneurs accessing the capital they need to launch and grow their businesses.” – Stephen Davis, President, CIC
Click here to learn more about Orange County’s new Revolving Loan Fund program!
Revolving Loan Funds: A Basic Overview
A Revolving Loan Fund serves as a gap financing measure used for the development and expansion of small businesses, micro enterprises and other initiatives. It’s a self-replenishing pool of money that utilizes interest and principal payments on past loans to issue new ones, providing access to a flexible source of capital that can be used in combination with more conventional sources. Often, a Revolving Loan Fund will act as a bridge between the amount the borrower can obtain on the private market and the amount needed to start or sustain a business.
Click here to learn more about typical uses, loan characteristics and how to capitalize Revolving Loan Funds!