Revolving
Loan Fund
(RLF)
A Business Loan Program
For
Small Business
Starts
And
Business
Expansions
Eligibility
Any person wishing to
establish a new business or expand an existing business within Clark County or the
city limits of Abbotsford, Colby, and Unity may apply.
Loans
are available for the following activities:
·
Acquisition of
land, buildings, and fixed equipment
·
Working capital
and inventory
·
Site preparation
and construction, reconstruction, or installation or buildings and fixed
equipment
·
Clearance and
demolition, removal or rehabilitation of buildings, and improvements
Loans
are not available for the following activities:
·
Refinancing
existing debt
·
Reimbursing
expenditures made prior to approval of the loan
·
Land, buildings,
or fixed equipment not essential to
the business
·
Residential
building construction or reconstruction
·
Routine
maintenance
Revolving Loan Fund
Objectives:
·
Create and retain
permanent private sector employment;
·
Increase personal
net income of county residents;
·
Encourage small
business start-ups and expansion;
·
Stimulate
investments in the county, particularly for value-added technology development
and existing business expansion;
·
Leverage public
and private investments; and
·
Diversify the
county's economy
The Revolving
Loan Fund will support the development of alternative financing mechanisms in
both the public and private sectors that are designed to promote additional
capital investment in the region.
RLF financing will
target those businesses which:
1.
Need a relatively small amount of financing;
2.
Require gap financing to reduce lending risk;
3.
Create significant jobs per loan;
4.
Diversify the economy; and
5.
Encourage technology development or other "new"
markets
General Information
Loans are subject to availability of funds.
Loans requests between $5,000 and $50,000 will
be considered. RLF should not exceed
33% of project financing.
The interest rate may be fixed or graduated on
a fixed schedule.
The minimum interest rate is four (4) percentage
points below the current Prime Rate quoted in The Wall Street Journal,
but no less than 4 percent or the minimum interest rate allowed under state law
(whichever is lower).
The repayment schedule will be set up for
either monthly or quarterly payments.
Based upon credit needs, the RLF Board may
provide flexibility for terms in repayment to include :
·
Delayed first payment
·
Demand payment of interest only for a limited period of time
·
Allow borrower to skip monthly payments—but only after a formal request
is made and approved by the RLF Board
The
term of the loan will vary depending upon the collateral and uses of
funds. As a guide, the RLF will
normally allow a maximum of 20 years on real estate, 10 years on equipment and
7 years on working capital.
Reasonable
security will be required for 100 percent of the loan. Collateral must be more
than sufficient to cover the loan amount. collateral must equal the term of the
loan.
Requirements
Leverage
at least $2.00 of private funds for every $1.00 requested.
Create
or retain one full-time permanent position for every $10,000 requested.
Demonstrate
that the proposed project is not eligible for financing from any other source
on reasonably equivalent terms.
Comply
with all applicable local, state and federal laws, regulations and ordinances
as required in application.
Loan
applicants will be required to complete EDA form 501 Certificate for
Non-Relocation assuring that the employer is not moving jobs from one location
to another. If the business moves from
Clark County, the loan will be recalled.
Other Available
Revolving Loan Funds:
*County of Clark
City of Abbotsford
Village of Curtiss
Village of Dorchester
City of Neillsville
*The Clark County Revolving Loan Fund is administered
by the Clark County Economic Development Corporation
For More Information on Financial Resources
Available to Businesses for
Start-up or Expansion contact:
Clark County Economic
Development Corporation
P.O. Box 236
212 South Main Street
Greenwood, WI
54437
Phone: 715-267-3205
Fax: 715-267-5320
Email: clarkwi@tds.net