Revolving Loan Fund Info:

Due to Apache County’s poor socio-economic history, low population thresholds, and general lack of infrastructure, banks and lending institutions were simply not interested in investing their resources in the area. The Foundation applied for and was awarded a grant in 2019 from the USDA Rural Development program to establish a Revolving Loan Fund for small and emerging businesses. The Industrial Development Authority of Apache County and Apache County, the Town of Eagar, the Town of Springerville, and the City of St Johns all contributed matching funds. These funds are being used to establish a revolving loan fund that is available to small and emerging businesses in Apache County. The FLCR’s approach to job creation is focused on support for locally-owned, independent businesses since those types of businesses generally create more jobs than chains or franchises. Locally-owned, independent businesses also have four times the economic impact, contribute more to nonprofits, volunteer more frequently, and build community pride. There is a prevalent community value throughout the region that emphasizes personal and community self-reliance. The FfLCR is seeking and encouraging applications from businesses seeking funding to expand or open a business that 1) creates “livable” job opportunities, 2) provides a product or service that has been identified as an “anchor business” or utilizes innovative technologies with potential for growth, 3) provides a “core” service that has been identified as essential to the community’s livability and quality of life, 4) is locally owned and operated, 5) incorporates principles of self-reliance in their business plans.

The FfLCR has a Loan Review Committee (LRC) consisting of business owners and members of the FfLCR that review applications and assist applicants with the application process. After the committee has determined that the application meets the established criteria, recommendation is made to the FfLCR Executive Board for funding. Terms are set depending on the loan amount and the applicant’s projected revenues. Generally, loan amounts are between $5,000 and $35,000 at one point above the prime lending rate on the day the loan is made. All principal and interest paid on each loan is invested back into the fund to be used by other successful applicants. This keeps the revolving loan funds circulating in the community and supporting local businesses.

If you have any questions, please feel free to contact us during regular business hours at 928-245-1998.