Regional Planning Commission of Greater Birmingham: Accounts Receivable Lending Program

Posted on: October 4th, 2012 by Kate Humphrey

NADO’s 2012 Innovation Awards recognized 64 projects from 22 states for their creative approaches to regional community and economic development, including the project described below. Click here for the full list of winners.

The Accounts Receivable Lending Program allows tenants of partner business incubators to borrow up to the lesser of $25,000 or 80 percent of the value of outstanding current receivables for 30 days at a low interest rate. Loans are used to fund activities related to the receivables such as the purchase of materials, payroll payment, and other costs. The Regional Planning Commission of Greater Birmingham administers the loans from applicant review through loan closing, management, and collection. Since its inception in October 2010, the program has produced approximately 115 loans totaling $2.8 million. Many of the participants in this small lending program become strong candidates for the commission’s larger, long-term revolving loan fund program.

Yvonne Murray, Director of Economic Development: [email protected]
Charles Ball, Executive Director: [email protected]

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