Areas Served: City of Centralia
THE CITY OF CENTRALIA ECONOMIC DEVELOPMENT REVOLVING LOAN FUND (RLF) is established as a requirement of the Illinois Department of Commerce and Community Affairs (DCCA) in approving prior or new loans submitted to DCCA.
The RLF can be structured in a manner the City deems necessary to meet the goals described, providing basic requirements of DCCA are met.
REVOLVING LOAN FUND GOALS AND OBJECTIVES: The funds recaptured from the Community Development Assistance Program (CDAP) economic development loans will be used to capitalize a revolving loan fund to further economic development.
The purpose of the RLF is to provide gap financing for existing businesses locally, as well as out of town businesses wanting to locate in the Greater Centralia Area.
RLF funds may be used to assist for-profit and not-for-profit organizations to carry out economic development projects.
Generally, RLF funds will be loaned by the City to the borrower (business or not-for-profit organization) at agreed upon terms.
(Not-for-profits must document the need for receiving assistance which may be in the form of a grant and/or loan.
) RLF funds may not be used as loans to help service or refinance existing debt.
In addition to using RLF funds for low-interest loans, RLF funds may be used to finance public facilities and improvements in support of economic development (e.
g.
, water system upgrading to serve an expanding business).
TERMS If the RLF is included as part of a financing package involving DCCA, SBA, or another governmental agency, as well as a financial institution and the City, the loan may not exceed fifteen (15) years to coincide with the length of the governmental agency loan.
If the RLF package involves the local financial institution and the City, the length of the loan will be determined by the financial institution, not to exceed fifteen (15) years.
The minimum interest rate is to be 3 percent.
The maximum loan will be 40% of the total project not to exceed $150,000 when the RLF is made in conjunction with DCCA, the Small Business Administration (SBA) or other governmental agency, as well as a financial institution and the City, provided the project results in the creation of at least 75 new jobs.
If the loan is to be made with a financial institution, the maximum loan will be $50,000 or 30% of the total project.
The City has the option of increasing the loan beyond the maximum listed above if it is apparent that it is necessary to secure a major business that will have a major impact on employment.
However, the RLF loan cannot exceed $200,000.
Contact InformationCity of Centralia, Illinois
Address: 222 South Poplar Street
City: Centralia
State: Illinois
Website:
http://www.city.centralia.il.us/index.pl?iid=3213&isa=Category
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