Areas Served: City of Mt. Vernon
The City of Mt.
Vernon, Illinois provides below-market, fixed-rate business loans to complement equity investments, conventional private sector financing and/or other forms of public sector financing to aid in the realization of commercial and industrial projects which would otherwise be less likely to materialize without such assistance provided by the City.
Commercial enterprises (i.e. retail establishments, service businesses, offices, etc.
), industrial related firms and nonprofit organizations are eligible to apply for and receive financial assistance through the RLF.
Proceeds from a loan extended through the RLF are to be used for CDAP eligible activities.
These activities include: 1. Purchase of land, buildings, equipment and machinery and other fixed assets.
2. Cost of site improvements, including construction of new facilities or additions, and infrastructure extension costs.
3. Renovations and improvements to existing facilities and leasehold improvements.
4. Inventory and working capital expenses including employee salaries, general operation expenses, and advertising / marketing expenses, except that amounts loaned for such inventory and working capital expenses shall not exceed $450,000. RLF funds shall not be used for: 1. Refinancing or consolidation of existing debt.
2. Paying off a business’s creditors.
3. Paying off personal debt of or salaries to principal officers.
4. Residential projects and projects of a speculative nature.
Each RLF loan has a minimum limit of $5,000 and a maximum limit of $450,000. However, if the jobs created or retained are manufacturing jobs or warehousing and distribution jobs, the maximum limit will be $1,050,000. Borrowers must demonstrate and insure that at least one (1) full time equivalent (FTE) job will be created or retained for every $15,000 in loan funds approved through the RLF Program.
Loans will be made at interest rates of not less than 3%, nor more than 10%, except that if the jobs created or retained are manufacturing jobs or warehousing and distribution jobs, loans may be made at interest rates of not less than 2.75% nor more than 10%.
Contact InformationCity of Mt. Vernon
Address: P. O. Box 1708
City: Mt. Vernon
State: Illinois
Website:
http://www.mtvernon.com/newedc/edchome2.htm
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