Frequently Asked Questions

What makes a person or business credit worthy? I need help with my business plan.  Who can help me? Do I need a business plan to get a loan? How is a RREDC loan different than a bank loan? What are your terms? Do you require collateral? My credit is not very good. Can I get a loan from RREDC? I'm not sure I need a loan. Who can help me decide what's best for my business?

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What makes a person or business credit worthy?

Lenders typically look at the "five c's" of credit. These are; capacity, capital, collateral, conditions and character. Click Here for More Information on the Five C's.

back to top I need help with my business plan.  Who can help me?

The Northcoast Small Business Development Center is a great source for business plan help. They provide workshops, have a library with sample plans, and can offer one-on-one assistance for you. Visit their webside at www.northcoastsbdc.org

back to top Do I need a business plan to get a loan?

Yes, RREDC will require a completed business plan in order to consider your application. However, the business plan does not need to be extensive. What we are looking for is a plan that shows how you can run the business, pay your loan obligation, and make enough money to support yourself.

back to top How is a RREDC loan different than a bank loan?

RREDC only provides loans to businesses that cannot get all of the financing they require from a private lending institution. This includes businesses that have been turned down by a bank. Otherwise, our loans are very similar to those offered by local private lenders.

back to top What are your terms?

Because we take more risk than a traditional lender, our interest rates are somewhat higher, ranging from 9% to 11% per year. However, we may be able to reduce your payment by lengthening the amount of time you have to pay back your loan.

back to top Do you require collateral?

Yes. Federal regulations require that we have collateral for our loans.

back to top My credit is not very good. Can I get a loan from RREDC?

RREDC does look at your credit history in determining whether or not we can provide you with a loan. However, we will take into consideration special circumstances that may have led to your past credit issues.

back to top I'm not sure I need a loan. Who can help me decide what's best for my business?

The North Coast Small Business Development Center (SBDC)provides free assistance to small business owners and entrepreneurs. RREDC strongly encourages all applicants to use SBDC programs before, during, and after the loan process. For more information, click here.

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RREDC 520 E Street, Eureka, Ca., 95501 Phone: 707-445-9651 FAX: 707-445-9652