Revolving Loan Fund Administration
Part of what makes the Revolving Loan Funds (RLF) so attractive to borrowers is their low fixed-rates and low down payments. But for communities, the best part is that the repayments of principal and interest stay within the local RLF to be lent to other businesses. In order to make the RLF grow, the community needs to constantly monitor the fund, analyze its portfolio for risk, and market its use within the community. WCDC can help do that for you. To learn more about how we can administer your community’s RLF, just click on the questions below:
What are the benefits of having WCDC manage your RLF?
WCDC supports your community. Local communities do not have the resources to dedicate full-time staff to administer the RLF. Through economies of scale, we do. WCDC will market your community’s RLF whenever there is a viable project in your community. We will meet with potential borrowers and explain the benefits of the program, and will assist those borrowers in preparing the application package to make the process as streamlined as possible. (back to top)
What is WCDC’s role in administering the fund?
Aside from marketing your RLF and assisting in the application process, we also manage the fund. WCDC will monitor and collect repayments to the fund, oversee and analyze your portfolio on an ongoing basis, and perform annual servicing to ensure your fund is in compliance with all relevant regulations. We will also respond to all of your borrowers’ questions and concerns. (back to top)
Does my community still decide which loans to approve?
Yes. After preparing an application from a potential borrower, WCDC will present a proposal to the board that your community has elected to review loan packages. The community’s loan board will then vote to determine the future of the loan application. (back to top)
What happens after the board approves the loan package?
WCDC will submit the package to the Ohio Department of Development for their subsequent review and approval. If approved at the state level, WCDC will work with a closing attorney to fund the loan. (back to top)
Can WCDC invoice borrowers for our community?
Certainly. Once WCDC closes and funds an approved loan, we will invoice and process the monthly repayments of principal and interest of each borrower. Borrowers are also able to access their accounts on-line so that they can easily see their payment history, outstanding balance, and other helpful information. (back to top)
How can we find out the status of loan repayments for each borrower?
WCDC makes keeping track of your loan portfolio easy. You will be given a user name and password. With this information, you will be able to access your loan portfolio on-line to find out information such as payment history and outstanding balance. (back to top)