Areas Served: City of Springfield
The City of Springfield, Illinois through the Office of Planning and Economic Development (OPED), offers a loan program with the use of its Community Development Block Grant (CDBG) funds to facilitate the growth of the commercial/industrial business sector located, or planning to locate, within the corporate boundaries of the City.
The purpose of the program is to create and/or retain permanent jobs which will directly benefit at least 51% low-to-moderate income individuals and promote economic growth within the City.
The funds are primarily intended to provide gap financing in conjunction with conventional financing; not to duplicate the financing of private lenders.
CDBG funds must be used in combination with bank financing and owner equity.
The City will generally participate in 25% or less of the project cost; and in no case will the City’s participation exceed that of the primary lender.
At least one full-time equivalent position must be created for every $10,000 of CDBG funds requested.
The office has established a loan maximum of $ 100,000. OPED will negotiate the relevant terms and conditions for financial assistance.
These terms will be flexible and consistent with the risk involved, and consistent with the terms of the private market instrument.
The office may match, but not exceed the interest rate or terms of the participating lender and generally take a subordinate collateral position.
Participants will be required to enter into a Development Agreement with the City specifying the legal obligations of all parties.
This loan program is not intended for start-up businesses, but rather for companies who have an established business history of three years or longer.
Projects involving the retail sale of goods are also ineligible for the business loan program.
Contact InformationCity of Springfield, Illinois
Address: 800 E. Monroe, Room 107
City: Springfield
State: Illinois
Website:
https://www.springfield.il.us/Businesses/FundingOpps.aspx
Leave a Reply