Areas Served: City of Cedarburg
The City of Cedarburg, Wisconsin offers a CDBG business loan fund to encourage business startups and expansions within City limits.
INELIGIBLE APPLICANTS RLF loans shall not be available for the following businesses: 1) speculative investment companies, 2) real estate investment companies, 3) lending institutions, 4) gambling operations, 5) non-public recreation facilities, and 6) other businesses not serving the interests of the City.
ELIGIBLE ACTIVITIES RLF loans shall be provided to eligible applicants for the following activities: 1) The acquisition of land and buildings.
2) The acquisition of furniture, fixtures, and equipment.
3) Site preparation; the construction and reconstruction of buildings; the rehabilitation of buildings, including leasehold improvements and facade renovation for commercial and industrial buildings; and the installation of fixed equipment.
4) Clearance, demolition, and the removal of structures.
5) Working capital.
6) Buyouts by purchase of assets or stock MINIMUM REQUIREMENTS To be eligible for funding, a proposed project shall meet all of the following minimum requirements: 1) Private Funds Leveraged.
One dollar of private sector investment shall be provided for each dollar of RLF investment.
Private sector investment is defined as financing from a private lending institution, public sector business loan programs other than the CDBG program, or new equity that is injected into the business as a part of the expansion project.
2) Cost Per Job.
A minimum of one full-time equivalent (FTE) job shall be created and/or retained for each $20,000 of RLF funds requested.
3) Financial Feasibility and Business Viability.
The applicant shall demonstrate that the proposed project is viable and that the business has the economic ability to repay the funds.
4) Low- and Moderate-Income (LMI) Benefit.
At least 51 percent of the FTE jobs that will be created and/or retained shall be held by or made available to persons who reside in low- and moderate-income (LMI) households as defined by the City with income limits provided by the U.
Department of Housing and Urban Development.
5) Compliance with Applicable Laws.
Applicants shall comply with all applicable local, State, and Federal laws and codes.
6) Project Completion.
All projects shall be completed, all funds expended, and all jobs created and/or retained within 24 months from the date of the RLF loan approval.
All jobs shall be maintained for a minimum of 12 months.
TERMS AND CONDITIONS Loan terms and conditions shall be structured on the basis of need and ability to repay.
Minimum standards include the following: 1) Loan Amount.
The amount of funds available for any single business enterprise shall range from a minimum of $10,000 to a maximum of $125,000. Requests for loan amounts outside the range identified will be negotiated on a case-by-case basis.
2) Interest Rate.
The interest rate on each loan shall be determined on a case-by-case basis by the RLF Committee, and shall range from a minimum of 4 percent to a maximum of the prime rate of interest plus 200 basis points–as published in the Midwest Edition of the Wall Street Journal.
The interest rate shall be fixed for the term of the RLF loan.
3) Loan Term.
Standard terms for RLF loans shall be as follows: a) machinery, equipment, and fixtures–2 to 10 years; b) buildings and land–5 to 10 years; and c) working capital–1 to 7 years.
Amortization periods that exceed the loan term may be provided where appropriate
Contact InformationCity of Cedarburg, Wisconsin
Address: W63 N645 Washington Avenue
City: Cedarburg
State: Wisconsin
Website:
http://www.ci.cedarburg.wi.us/businesses/
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