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Collateral Support Program

The RRCF Collateral Support Program provides guarantees to local banks to make qualifying loans to small companies. A typical loan will be for working capital up to $1 million. When extending a guarantee, RRCF will purchase a Certificate of Deposit at the participating bank as additional collateral. An origination fee of 1-2% is applied to the total amount of the loan being supported. Fees are then returned back to the program and help offset program costs and thereby extending the life of the program.

Contact your current lender and ask about the RRCF Collateral Support Program. If your current lending institution is a program participant, your loan officer will go through the loan qualification process with you and apply to RRCF for a collateral support deposit on your behalf. If your lender is not a program participant, or is unaware of the program, please contact RRCF directly for a referral. The program is offered on a first-come,first served basis to qualified small business borrowers. Loans must generally first  meet your lender’s credit underwriting criteria with the exception of loan collateral adequacy, which is what the program will cover.

Use of Funds and Terms

  • Business working capital loans with terms of 12 to 18 months
  • Real Estate, Equipment, and other commercial loans up to 5 years
  • Maximum loan amount cannot exceed $5,000,000
  • Maximum Collateral Support cannot exceed $500,000
  • Funds may be used to support eligible charities and nonprofits,
  • Funds cannot be used for refinancing existing debt, change of ownership, owner reimbursement, delinquent taxes, passive or investment real estate, speculative activities, lending, pyramid schemes, illegal activities, gambling establishments, or other uses prohibited by SSBCI

    If you are an entrepreneur looking for funding or an angel looking to make investments, please contact Ryan Aasheim, RRCF Manager, at ryan@praxissg.com.