cepa helps business grow

CEPA FUND Eligibility

Typically, eligible projects for loans can include any business venture, governmental public body, or entities involved in a community or economic development project that promotes job creation and/or provides needed community services that benefit areas, including loans to for-profit businesses and loans to not-for-profit entities. Revolving Loan Fund proceeds may be used for land, fixed assets, machinery and equipment or working capital needs. Working capital loans will only be considered in conjunction with the purchase of other assets as specified. Each project must meet certain criteria before a project will be considered eligible for funding from the CEPA Fund.

Ineligible Uses

Ineligible uses of CEPA’s Revolving Loan Fund include pre-development costs, refinance of existing debts; illegal activities; legal activities that, in the opinion of CEPA’s Board of Directors adversely affect CEPA’s Revolving Loan Fund interests; general improvement loans related to normal replacement needs of a business and unrelated to business expansion/job creation; and loans to projects which have alternative sources of financing at reasonable interest rates.

Loan Amounts and Supplemental Financing Requirements

The minimum loan will be $10,000 and the maximum CEPA FUND loan will be determined by our loan committee. CEPA’s Revolving Loan Fund is happy to work with other lenders and sources to optimize the leverage of outside resources and enhance the chances for approval of a CEPA FUND loan request.

Interest Rates and Fees

Interest rates on CEPA’s Revolving Loan Fund 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. A loan servicing fee of up to 1 percent of the loan balance will be charged to help cover administrative costs of CEPA’s Revolving Loan Fund. Borrowers will be charged for loan closing costs, attorney’s fees, filing fees, etc., as necessary to complete loan documentation. All loan fees will be addressed in the loan agreement between CEPA and the loan recipient.

Loan Terms

The term of a CEPA Revolving Loan Fund loan shall be determined by CEPA’s Board. Loan deferments of up to two years may be considered on a project-by-project basis. The Loan Review Committee will make a recommendation concerning the term of the loan, depending upon project need, the expected life of the security and the applicant’s ability to repay. The term of the loan will not exceed the expected life of the asset(s) being used as collateral.

Collateral

Loans will be collateralized, as determined necessary by CEPA’s Board, to secure its participation in the project and can include, but is not limited to, mortgages, liens, letters of credit and/or personal and corporate guarantees. Other terms and conditions may be required as determined by the CEPA Board of Directors, depending upon individual circumstances, including but not limited to assignment of leases, subordination agreements, life insurance, etc.  The loan recipient will be required to maintain appropriate insurance on all secured assets and name CEPA’s Revolving Loan Fund as loss payee.

Application Procedures and Loan Administration

  • Contact Russ Carothers at Coast Electric Power Association for a loan application or use this link to complete and submit your application.
  • Russ Carothers can be reached at russcarothers@coastepa.com or (228) 363-7278
  • Applications will be accepted during normal business hours. Applicants do not have to be a member of Coast Electric Power Association or be served by Coast Electric Power Association.
  • A staff person of Coast Electric Power Association will review applications for completeness and present complete applications to the Loan Review Committee.
  • A loan committee will analyze each project and make a recommendation to CEPA’s Board of Directors.
  • The CEPA Board of Directors will review revolving loan fund applications at their regularly-scheduled monthly board meeting. However, if needed and at the board’s option, the board may call a special meeting to review a loan application.
  • CEPA Board of Director’s shall have final authority to approve or deny all revolving loan fund requests and to determine appropriate terms and conditions.
  • For approved loans, a loan agreement addressing all of the terms and conditions, including monitoring procedures, repayments, delinquencies, defaults and remedies for that project will be prepared by CEPA’s Revolving Loan Fund. In addition, CEPA’s Revolving Loan Fund shall have prepared all notes, mortgages, security agreements, UCC filings and other legal documents necessary to close the loan.