Program Objectives

The Forest Products Revolving Loan Fund (FPRLF) Program is designed to finance projects that implement value-added production processes. Financial assistance is available to eligible forest products firms in the State of Washington.

Program Structure

The FPRLF program provides matching loans to qualified small and medium-sized forest products manufacturing firms to finance projects that contribute to the diversification of the forest projects industry.

A state loan packager works with the applicant to assemble the application materials including financials, business plans, and credit analysis. Program staff completes loan processing of approved applications. After closing, loan payments are made through a contract loan servicer.

Types of Loans

Loans are available to meet most financing needs. Typical loans are used to finance:

• Purchase of machinery, equipment and fixtures
• Real estate
• Engineering costs
• Construction
• Inventory purchases
• Working capital loans may also qualify

Loan Terms

• Loan must be matched 1:1 by non-federal funds.
• Minimum loan size: $50,000.
• Maximum loan size: $1,000,000.
• Interest rate: Negotiable.
• Fees: $250 processing fee, packaging fee, and additional fees may include UCC searches, real estate title searches, and title insurance.
• Term of loan: Negotiable

Who Qualifies

Loan applicants must meet credit criteria to be eligible for financing. General requirements include:

• The applicant must have sufficient management experience and technical ability.
• The applicant must have a satisfactory credit and personal history and reasonable amount of equity in the business.
• The business must show adequate repayment ability.
• The applicant must be willing to pledge available collateral.

Updated April 2009