Areas Served: City of Tomah
The Business Revolving Loan program provides low-interest loans for projects in Tomah, Wisconsin that will create new jobs, assist businesses to maintain or expand existing operations and advance the community’s economic development goals and objectives.
The revolving fund is intended to provide a financial incentive for businesses and industries to invest in their own growth potential by providing the necessary leverage money.
The CDBG Loan Fund, therefore, is meant to serve an important, yet secondary role to the private financing for the business project.
Program loans shall be available to eligible applicants for the following activities: (1) The acquisition of land, buildings, and fixed equipment.
(2) Site preparation and the construction or reconstruction of buildings or the installation of fixed equipment.
(3) Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements.
(4) The payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs.
(5) Working capital (inventory and direct labor costs only).
(6) Purchase of dairy cows resulting in significant long-term increases in capacity to produce milk.
To be eligible for funding, a proposed project must meet all of the following minimum requirements: (1) Private Funds Leveraged.
The applicant must leverage a minimum of one dollar ($1.00) of private funds for every one dollar ($1.00) of loan funds requested.
Higher leverage may be required at the discretion of the Loan Review Committee.
(2) Cost Per Job Created.
At least one (1) full-time permanent position or full-time equivalent must be created for every $20,000 of program funds requested.
The Committee may require lower job cost where warranted, (i.e. taking into consideration type of jobs, hourly wage, etc.
) Loan terms and conditions shall be structured on need and ability to repay.
Minimum standards shall include the following: (1) Loan Amount.
Loan amounts are subject to the availability of program funds.
(2) Interest Rate.
The interest rate shall be established by the Loan Review Committee.
(3) Terms for Loans.
(a) Working capital loans shall have a maximum term of seven years.
(b) Loans for machinery, equipment and fixtures shall have a maximum term of ten years.
(c) Real estate loans shall have a maximum term of 12 years which can be amortized on a 20-yr basis with the option of refinancing for an additional 8 years.
(d) In any case, the loan shall not have a term longer than the terms of the other private financing in the project.
Contact InformationCity of Tomah, Wisconsin
Address: 819 Superior Ave
City: Tomah
State: Washington
Website:
http://www.tomahonline.com
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