Areas Served: McLean and Livingston counties, Illinois
Mid Central Community Action, Inc. is actively participating in the Community Service Block Grant (CSBG) Loan Program to assist in financing small businesses for either start-up or expansion projects.
The Illinois Community Services Block Grant Loan Program is administered jointly by the Illinois Department of Commerce and Economic Opportunity, a statewide network of Community Action Agencies (CAA’s) and Illinois Ventures for Community Action (IVCA).
The purpose of the CSBG Loan Program is to create and retain jobs for low-income persons and to promote economic growth in the Illinois counties of McLean and Livingston.
The intention is to fill the gap in conventional financing, not to duplicate the financing of private lenders.
The loan program could lend 20%-49% of a total loan project at a fixed interest rate of 5-7% for up to 10 years.
The remaining 51%-80% of the loan package must be obtained through a local bank (with or without SBA participation) and owner equity.
Money’s are disbursed on a first-come, first-serve basis.
The CSBG Loan Program funds may be used for machinery, equipment, inventory and/or working capital.
Funds may not be used for land or building purchases, construction or renovation; those needs would fall under the private lender’s funding.
Potential loan projects must plan to create and maintain one full-time equivalent job for a low-income person or persons for every $20,000 (or part thereof) of CSBG loan funds.
The hiring must be completed within the first two years of the loan.
The processing of the loan can take from 60-90 days.
There is a $20 fee for running the credit reports required of CSBG loans, as well as a 1% closing fee.
Contact InformationMid Central Community Action, Inc
Address: 1301 W Washington St
City: Bloomington
State: Illinois
Website:
http://www.mccainc.org/smallbusiness.html
Leave a Reply