Direct Loan Program
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.
- Production agriculture products through growing,
cultivating,
and harvesting either directly or through horizontally integrated
livestock operations except for commercial nurseries or timber
operations.
- 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.
- 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.
- 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
Please Note: If you are
prompted for a password when opening the documents below, click cancel
and the document will come up. If it does not, contact
reapinfo@cfra.org. |
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.
Peer Loan Program
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
Please Note: If you are
prompted for a password when opening the documents below, click cancel
and the document will come up. If it does not, contact
reapinfo@cfra.org. |
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.
Quick Grow
Loan Program
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
Please Note: If you are
prompted for a password when opening the documents below, click cancel
and the document will come up. If it does not, contact
reapinfo@cfra.org. |
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.
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