• Feb 02, 22
• spencergregory
• Revolving Loan Fund Directory
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A Business Loan Program designed to facilitate creation of new permanent employment, retention and expansion of existing businesses, and the leveraging of new private investment in the City of Columbus, Wisconsin.

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

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 Acceptable uses of funds include: Acquisition of land, buildings, equipment and fixed assets, site preparation and the construction or reconstruction of buildings or the installation of fixed equipment (some assessments may be eligible), and working capital.

Ineligible Activities Loans will not be made for: refinancing or consolidation, expenditures prior to loan approval, specialized equipment not essential to business operation, residential building construction or reconstruction, routine maintenance, or soft costs such as design, promotional activities and legal fees.

Minimum Requirements for RLF Loan To be eligible, the proposed project must meet all of the following requirements: – Private fund Leveraging.

Must leverage at least one dollar of 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 $20,000 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.

– Location.

Activities financed under the RLF must be located within the City of Columbus.

Corporate headquarters may be located elsewhere.

– Feasibility.

Applicant must demonstrate the proposed project is viable and there is ability to repay the funds.

– Project Completion.

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

Conditions – Loan Amount.

Loan amounts are always subject to availability of funds.

There is no set minimum or maximum but generally loans should be for amounts greater than $20,000. – Interest Rate.

The rate may be fixed or graduated on a fixed schedule.

In no case shall the rate be greater than two percent above the Wall Street Journal prime rate at time of closing.

– Term.

In no case will the term of the loan be longer than the term of private financing.

Maximum terms are: Real Estate 12 yr.

Term/ up to 20 yr.

Amortization Equipment 10 years Working Capital 7 years – Collateral.

The City will seek to have the best collateral position possible to ensure the RLF loans are adequately secured.

The RLF is willing to take a subordinate position if it is justified in the loan proposal.

Repayment.

Amortization schedules shall be set up for monthly payments.

Interest and/or principal payments may be deferred one year, if justified in the loan proposal.





Contact Information
City of Columbus, Wisconsin
Address: 105 N. Dickason Blvd
City: Columbus
State: Wisconsin

Website: http://www.cityofcolumbuswi.com/CityDepts/CDA/revloan.asp

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