Economic Development Revolving Loan Fund

The City of Newport administers a loan program designed to assist small businesses with start-up or expansion activities that will create new jobs or retain existing jobs.

These loans may be used to assist Newport small businesses comply with the new State Fire Codes if all other program criteria are met. This program is governed by guidelines established by the Economic Development Administration - U.S. Department of Commerce.

In order to qualify, the following conditions must be satisfied:

• The applicant business must be located in Newport.
• The loan must result in the creation or retention of permanent full-time jobs.
• The applicant must show that credit is not otherwise available to carry out the activity.
• The applicant must demonstrate the ability to repay and be prepared to offer collateral on the loan.
• A financially-sound business plan must be provided.

The maximum loan amount will vary depending on the needs of the applicant, the number of new jobs to be created, the amount of matching private investment in the project, and the nature and availability of collateral to secure the loan.

The interest rate is the prime rate plus 3.5%. The loan term will depend on the loan amount and the ability to repay, but will not normally exceed five years. There is a $250 application fee and a 2% loan administration fee. Other fees may apply as well.

Loan application review is performed by a private business advisor (under contract to the City), who makes a recommendation to the Loan Review Board. The Board, comprising the City Manager, City Finance Director, and a commercial lending officer, has final approval over all loan applications.

Revolving Loan Fund Guidelines

Businesses may learn more by calling June House, Senior Development Planner, at 401-845-5474, or by e-mail: