The Peninsula Revolving Loan Fund will lend up to $150,000 to finance new fixed asset investment for companies in economic base industries located in Newport New that otherwise would be unable to obtain financing. The actual loan amount is determined (subject to the availability of funds), by the Board of the Peninsula Industrial Finance Corporation (PIFC) and may not exceed 75% of the project cost.
While real estate costs are eligible, PIFC prefers to fund machinery or equipment, since federal Davis-Bacon requirements apply to any construction activity.
Loan Rate & Use
The fund makes fixed interest loans at 4% below the interest rate on Treasury Notes of similar maturity (but not lower than 5%). The maximum term is 5 years. The fund was capitalized by a grant from the U.S. Economic Development Administration and, therefore, financing is not available to companies relocating jobs from outside the Hampton Roads metropolitan area. However, companies expanding to Newport News from another location are eligible.