A Unique Way to Create a Revolving Loan Fund
FarmTel Communications in Wayland worked with Ripple Effect to creatively seed a revolving loan fund (RLF) for the independent telecommunications provider. The city of Wayland was in need of gap financing for a street and water infrastructure project. The street serving Parkview Home, the city’s intermediate care, and independent living facility needed to be repaved.
Ripple Effect approved a $30,000 forgivable loan to FarmTel who, in turn, loaned $60,000 with favorable interest terms to the city for the project. Once the loan was repaid by the city, the Ripple Effect loan to FarmTel was forgiven and the company created a permanent revolving loan fund. Today, FarmTel’s RLF is available for subsequent loans to local businesses.