SPAG established a regional economic development program in 1981. The department has focused on job creation by incorporating elements of planning, financing, marketing, training, and technical assistance (for grant writing services, visit the Regional Services page).
SPAG established the RLF program in 1987 with a $500,000 grant from the Economic Development Administration (EDA). Due to the excellent track record of SPAG, EDA funded an additional $500,000 grant in 1991. The EDA grants, combined with local matching dollars, give SPAG a total fund of just over $1,300,000 to loan to private businesses. Due to the closing of Reese Air Force Base, SPAG was awarded an additional $500,000 in 1997 which served to increase the RLF capital available to businesses in the region.
What are the requirements to use the RLF funds?
Businesses must be in the following counties: Bailey, Cochran, Crosby, Dickens, Floyd, Garza, Hale, Hockley, King, Lamb, Lynn, Lubbock, Motley, Terry, and Yoakum.
Eligible Use of Funds
Loan funds can only be used for working capital, consolidation of accounts payable, machinery and equipment, and building and land.
1 job must be created or retained for every $10,000 borrowed from SPAG-RLF.
All SPAG-RLF loans must pay a 1 point (1%) loan origination fee at the time the loan closes. In addition, the borrower is responsible for paying all attorney’s fees and filing fees associated with the loan.
Terms and Interest Rate
Terms are tied to the useful life of assets pledged as collateral. Interest rates are determined by RLF Board, as low as 4%. The rate is fixed for the life of the loan, with no pre-payment penalty.
SPAG-RLF loans cannot be used to refinance existing debt, or for new construction. Borrowers can only request 1/3 of their total project cost at a maximum of $250,000.