The Umatilla Electric Cooperative is looking to make a difference to local communities one business at a time.

Through the UEC Revolving Loan Fund, local businesses can apply to UEC for business loans starting at $5,000 and up to about $360,000.

Rep. Greg Smith, the owner of Greg Smith and Company, an economic and business development company, partnered recently with UEC to continue offering the program. He said he has nearly 20 years of experience working in small-business consulting, business recruitment and gap-financing options. Now, he said, he hopes to provide local businesses with even more options with UEC’s revolving loan fund program.

“This is a neat tool for small-business owners,” Smith said at the Hermiston Chamber of Commerce Business to Business Luncheon Tuesday afternoon. “The projects that can be funded are pretty broad in scope.”

Smith said eligible projects include any business venture involved in a community or economic development project that promotes job creation, provides needed community services that benefit rural areas and loans to non-profit entities. The loans may be used for land, fixed assets, machinery and equipment or working capital needs.

Ineligible uses of the loan fund include pre-development costs; refinancing of existing debts; any illegal activities; legal activities that, in the opinion of the UEC Board of Directors, adversely affect the interests of the revolving loan fund; general improvement loans related to normal replacement needs of a business and unrelated to business expansion or job creation; and loans to projects that have alternative sources of financing at reasonable interest rates.

Currently, Smith said UEC has about $500,000 for this effort, which were provided by the USDA. He said the program has been available for about four years, however, interest has grown a lot within the last year. When businesses repay the loans, the money replenishes the fund for future projects. The revolving loan program is being offered in partnership with Good Shepherd Medical Center in an effort to bring dollars and options into the community for local businesses, he said.

Smith said, when looking to loan out funds for businesses, he and other entities normally look for what are known as the six Cs: character, credit, collateral, cash flow, contribution and community involvement.

“The Umatilla Electric Cooperative wanted to be a part of that last piece,” he said. “The Cooperative is committed to helping small business in the community.”

The UEC revolving loan fund projects must also include a minimum of 20 percent funding from other sources. Interest rates on the loans will not exceed the prevailing prime rate as published in the Wall Street Journal and will be determined based on the evaluation of ability to repay and the necessity of below-market financing to make the project happen, according to a document provided from the UEC.

An annual loan servicing fee of up to 1 percent of the unpaid balance will also be charged, which is standard procedure, Smith said. The loan shall not exceed 10 years and may be less than 10 years. Loan deferments of up to two years may be considered on a project-by-project basis.

Those interested in applying may download the application at www.umatillaelectric.com. Applications will be accepted during normal businesses hours at Greg Smith and Company in Heppner. Staff at Greg Smith and Company review the applications and present them to its loan review committee. The committee analyzes each project and makes a recommendation to the UEC’s Board of Directors. The UEC board will have final authority to approve or deny all revolving loan fund requests.

“The money is available on a first-come-first-served basis,” Smith said. “If you come to us, we will do our best to get you going.”

For more information, visit www.umatillaelectric.com.