Direct loans are available for working capital, inventory, supplies, furniture, fixtures, machinery and/or equipment. Proceeds can be used for a startup or an expansion business. In no case shall the proceeds of this loan fund be used for down payment purposes or for the purchase of real estate.

We have two types of direct loans. The REAP Rapid Loan and the REAP Direct Loan are products of the Rural Enterprise Assistance Project (REAP), a program of the Center for Rural Affairs. The REAP Rapid Loan and REAP Direct Loan are part of a family of loan products designed to fill a gap for financing needs of startup and existing small businesses in rural Nebraska.

REAP Rapid Loan
The REAP Rapid Loan product offers loans up to $5,000 with a unique application process. Borrowers may fill out the loan application online or manually. The REAP Rapid Loan application form serves as the complete application for the REAP Rapid Loan.

All REAP members have access to the REAP Rapid Loan product. REAP Roundtable and Association members will receive an interest rate reduction of 2 percent on the first two REAP Rapid Loans. This interest reduction only applies to the REAP Rapid Loan product.

All REAP loans require collateral. Subsequent larger loans can be obtained through the REAP Direct Loan Program and/or other existing micro lending organizations in Nebraska.

REAP Direct Loan
The REAP Direct Loan product offers loans up to $35,000. Borrowers fill out an initial loan application, either online or manually, which serves as the pre-application for the REAP Direct Loan (this is the same form as is used for the REAP Rapid Loan application).

If the pre-application is approved, the borrower will complete a REAP Business Plan for the final loan review. Please see the REAP Direct Loan Program Outline for further information.
 

The REAP Rapid Loan and REAP Direct Loan Pre-Application can be filled out online or the forms can be printed and submitted to your area REAP Business Specialist. Or you can contact your area REAP Business Specialist to receive the application form.

Specifics of REAP Direct Loan Products

• Term of Loan: Equivalent to the useful life of the asset purchased to a maximum term of six years.
  

• Rate: Prime plus 4.00 percent or SBA maximum limit (whichever is lower.)
  

• Loan Levels: Rapid Loan (up to $5,000). Direct Loan (up to $35,000).
  

• Job Creation: Each project shall create/retain one full-time equivalent (FTE) per $35,000 of RD-RLF loan funds.
  

• Loan/TA Fee: Fee is $100/loan for loans from $5,001-$35,000. Fee is $35/loan for loans $5,000 and below. (Note: REAP peer or individual membership must be maintained over the life of the loan.)
  

• Other Fees: Borrower is responsible for all fees in cases where real estate is used as security for the loan. Borrower is responsible for fees relating to title and lien searches. The amount required can be made part of the loan or paid directly to REAP from the borrower.
  

• Eligibility: Any for-profit entity (individual, firm, partnership, or corporation) legally doing business within the state of Nebraska. Non-profit childcare centers are eligible to borrow under this program, but no other type of non-profit business is eligible.
  

• Exceptions: 

1. Production agriculture products through growing, cultivating, and harvesting either directly or through horizontally integrated livestock operations except for commercial nurseries or timber operations.
   
2. Development of a proposal that may result in the transfer of jobs or business activities from one area to another. This provision does not prohibit establishment of a new branch or subsidiary.
   
3. Development of a proposal which may result in an increase of goods, materials, commodities, services, or facilities in an area where there is not sufficient demand.
   
4. Projects not owned or controlled at least 51 percent by U.S. citizens or persons legally admitted for permanent residence.

Rapid and Direct Loan Program Application and Documents

PRINT LOAN APPLICATION
   REAP Rapid Loan and Direct Loan Pre-Application    MS Word File

Rapid and Direct Loan Program Outline   MS Word File

Rapid and Direct Loan Program Policy   MS Word File

Business Profile   MS Word File

LMI Form   MS Word File

Credit Check Form   MS Word File

Business Plan ($5,001-$35,000)   MS Word File (generic Business Plan Document)

Additional Support Forms for $5,001-$35,000
      Collateral Form   MS Word File
       Delinquency Information   MS Word File
       Environmental Form   MS Word File
       ACH Permission Form   MS Word File
       Financials Worksheet   MS Excel File
               Personal Balance Sheet   MS Excel File
               Personal Budget   MS Excel File
 

Please contact REAPinfo@cfra.org or call 402-656-3091 or 402-687-2103 x 1012 for further information.

REAP utilizes a unique "peer-group/step-up lending" model. In the "step-up" model, REAP members are able to borrow at various loan levels with the first being $1,000 followed by levels of $2,000, $4,000, $8,000, and ultimately $10,000. (A borrower may begin at the $2,000 level if they have a completed business plan.)

A borrower can only "step-up" to the next level if they have successfully paid back their previous loan. Interest rates are prime plus 1 percent on the first two loans and prime plus 4 percent or SBA maximum allowable rate (whichever is lower) for all subsequent loans.

Peer Loan Program Application and Documents

Peer Loan Program Outline   MS Word File
Peer Borrower Procedures   MS Word File
Business Profile   MS Word File    Business Profile   Adobe Acrobat pdf file
LMI Form   MS Word File
Application for Start-up Business   MS Word File
Application for Existing Business   MS Word File
Peer Loan Business Plan   MS Word File
ACH Permission Form   MS Word File

Please contact REAPinfo@cfra.org or call 402-656-3091 or 402-687-2103 x 1012 for further information.

The Quick Grow Loan Program is a collaborative effort between the Rural Enterprise Assistance Project (REAP) a program of the Center for Rural Affairs and GROW Nebraska. These loan products have been exclusively developed for use by GROW Nebraska clients.

The Quick Grow Loan Program offers two distinct loan products. Both loan products can be used for startup and existing business purposes and are designed for easy borrower application process and quick turn around. The Quick Grow Loan can be $1,000 or less and requires no collateral. The Quick Grow Direct Loan can be $5,000 down to $1,000 and requires collateral. Subsequent larger loans can be obtained through existing microlending organizations in Nebraska.

Quick Grow Loan Program Application and Documents

Quick Grow Loan Program Outline   MS Word File
Quick Grow Borrower Procedures   MS Word File
LMI Form   MS Word File
Business Profile   MS Word File    Business Profile   Adobe Acrobat pdf file
Quick Grow Loan Application for Start-up Business ($1,000 or below)  MS Word File
Quick Grow Loan Application for Existing Business ($1,000 or below)  MS Word File
Quick Grow Direct Loan Application ($5,000 to $1,000)  MS Word File

Please contact GROW Nebraska, P O Box 7, Holbrook, NE 68948, telephone: 888-GROWNeb or 308-493-5394 or fax 308-493-5396 or email: janell@growneb.com or contact REAPinfo@cfra.org or call 402-656-3091 or 402-687-2103 x 1012 for more information.