• Dec 02, 21
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

Through its participation in the Wisconsin Community Development Block Grant (CDBG) Program, the City of Portage has capitalized a Revolving Loan Fund (RLF) for businesses in Portage, Wisconsin.

This fund is designated to make direct business loans on a companion basis with other financing sources (public sector loans, governmental loans/grants, equity, etc.

) ELIGIBLE ACTIVITIES – Acquisition of land, buildings, equipment and fixed assets.

– Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements.

– Payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs.

INELIGIBLE ACTIVITIES – Refinancing or consolidation.

– Reimbursement for expenditures prior to loan approval.

– Specialized equipment that is not essential to the business operation.

– Residential building construction or reconstruction.

– Routine maintenance.

MINIMUM REQUIREMENTS FOR RLF LOAN – Private Fund Leveraging – Must leverage at least one dollar of non-federal private funds for every dollar of RLF funds requested.

– Job Creation – At least one permanent Full-time Equivalent (FTE) position must be created or retained for every $15,000 of RLF funds requested.

– Employment – At least 51 percent of the jobs created or retained must be made available to persons of low to moderate income (LMI) as defined by the Federal Government.

– Feasibility – Applicant must demonstrate that the proposed project is viable and the business will have the economic ability to repay the funds.

– Compliance – Applicants shall comply with all applicable local, state, and federal laws and codes.

– Project Completion – Projects shall be completed within 24 months from the date of the loan approval.

Applicants shall provide the community a project implementation schedule not exceeding 24 months for project completion and job creation and maintain the positions created for 24 months.

CONDITIONS – Loan Amount – Loan amounts are subject to the availability of program funds.

– Interest Rate – The rate shall be an intereest rate equal to the rate of return paid by the Local Government Investment Pool (LGIP) at the time that the loan is approved.

In the event the loan repayment extends beyond the term of the loan, the interest rate shall increase 2% above the prime rate.

– Terms – In any case, the loan shall not have a term longer than the terms of the other private financing in the project.

Maximum terms are: – Real Estate 12 year term/up to 20 yr.

Amortization – Equipment 10 years – Working Capital 7 years – Period of Payment – Terms may include longer amortization schedules with balloon payments.

Amortization schedules shall be set up for monthly payments.

– Repayment – Payment of interest and/or principal may be deferred for up to one year if merited in the loan application.

– Prepayment – There shall be no prepayment penalties.

– Collateral – The committee will seek to have the best possible collateral position possible to ensure that RLF funds are adequately secured



Contact Information
Columbia County Economic Development Corporation
Address: 1800 Kutzke Road, Suite B
City: Portage
State: Wisconsin

Website: http://www.co.columbia.wi.us/ColumbiaCounty/Default.aspx?tabid=1583

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