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Revolving Loan Fund

Category: Financial Assistance, Local Incentives

What is the Revolving Loan Fund (RLF)?

The Revolving Loan Fund is a program that provides financial assistance to new and expanding local businesses. The purpose of the RLF is to stimulate private investment and create employment opportunities in Orem. Funding for the RLF comes from the Department of Housing and Urban Development (HUD) and the Economic Development Administration (EDA).

Our Revolving Loan Fund is the oldest of its kind in the state of Utah. Since the inception of the RLF in 1985, it has provided loans to over 148 Orem businesses, with the total amount loaned recently surpassing $10.2 million.

Who can utilize the RLF?

Consideration for the Revolving Loan Fund is given to all applicants who meet the following.

Your business must fall within the following two categories.

  • An industrial/manufacturing, commercial, or service business.
  • An owner-user business or a for-profit company.

To comply with federal funding regulations and to achieve the purpose of the RLF, businesses must show they can meet these additional requirements.

  • The business must provide at least two private sector dollars for every one RLF dollar.
  • The loan money must be used as a source of working capital or financing for the acquisition of machinery or equipment used at the Orem place of business.
  • The business must create one job for every $35,000 borrowed.
  • 51% of jobs created must pay at least minimum wage and be available to people with a low/moderate income.

*Loans will not be made to companies who are in direct competition locally for their main client.

Special Considerations

Although all loans that meet the minimum requirements will be considered, preference will be given to applications who:

  1. Have demonstrated that funds are not available from other sources;
  2. Have shown they will exceed the minimum requirements of job creation while maintaining the ability to meet debt service;
  3. Have shown that RLF funds are fully secured. (The greater the security of RLF funds, the higher priority given to the application);
  4. Create jobs in the basic sector, which will spinoff additional new jobs in the service and retail sector;
  5. Demonstrate public and/or community benefit.

Business Revolving Loan Fund Facts and History

  • Commission for Economic Development in Orem (CEDO) began administering the Business Revolving Loan Fund in 1985. 
  • There have been a total of 147 loans given.
  • Total loans made that have revolved since 1985: $10,129,945.23
  • Of the 147 loans made there have been over 1,100 full time equivalent low to moderate jobs created.
  • The funds originated from the Housing and Urban Development’s Community Development Block Grant Program (CDBG) and the US Economic Development Administration (EDA). 
  • The minimum amount to loan is $15,000 and the maximum allowed amount to loan is $80,000.
  • Some of our successful loan clients include:  800 Lens-Now (aka 1-800 Contacts), Digis Networks, Fezzari, Granny B’s Cookies, K-Tec (aka Blendtec), Kara’s Chocolates, Moxtek, PowerQuest (aka Symantec), Traco Manufacturing, and Wolfe Electronix (aka Computrol).

What are the specifics of the loans?

Maximum loan amount is $80,000.

  • Interest rate is up to three points above the Wall Street Journal Prime Rate (fixed over the loan term). Typical interest rates have been between 8-12%
  • Minimum leverage is 2:1 (which means a minimum of two private sector dollars for every one RLF dollar loaned)
  • Applications are accepted year-round and are due by the end of the month prior to the month in which applications will be considered by the RLF committee.

The RLF Board reserves the right to approve or deny loan candidates at its discretion. If you have any further questions about the RLF or would like to request an application, please contact Kathi Beckett at (801) 229-7079 or



Kathi Beckett
City of Orem, Economic Development
Phone: 801-229-7079