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 The Defense Conversion Revolving Loan Fund

  Financial Services

 Description of Loan Products

 The DC RLF offers two (2) types of loans:

     
  • Secured Line of Credit: Secured line of credit loans provide working capital needs for businesses that are annual in duration.  A line of credit can be used to finance seasonal peaks in a businesses production level such as inventories, receivables and other businesses expenses that occur normally in the annual business cycle, where the turn over of current assets is the primary source of repayment. 
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  • Term Loans: Term Loans are provided for capital needs that exceed one year (12 month) in duration.  A term loan can be used to finance the permanent increases in production levels of business, i.e. capital equipment, leasehold improvement, furniture and fixtures or a permanent need of for an increase working capital level.  Business needs where the cash flow generated by the business over time is the primary source of repayment.

 

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