• Jan 01, 22
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

Licking County and the City of Newark established the RLF to help stimulate economic development and job creation.

Under the RFLP, payments of approved loans re-circulate into new loans, economic development, and jobs.

The RLF helps overcome gaps in available financing which could inhibit business and industry from obtaining credit and consequently impede economic growth.

The RLF is not a substitute for private financing.

Targeting The RLF program is targeted toward sound projects involving businesses which: 1. have a potential for local spin-off jobs; 2. increase the diversity of the products and services offered by the local economy; 3. do not directly compete with other local businesses; 4. involve the development of a new market or product; 5. produce a product or offer a service which is currently imported from outside Licking County; 6. apply a new process or technology; 7. are in a manufacturing industry; and, 8. have a JTPA or similar commitment.

Financing Policies Average Loan Size: Typical RLF loans range in size between $5,000 to $30,000 with no specified minimum.

Initial or subsequent loans to a single borrower may not exceed a total of $100,000. Eligible Activities and Borrowers: The RLF helps finance business start-ups, expansions, and/or modernization of facilities or equipment.

Eligible borrowers are private for-profit enterprises organized as proprietorships, partnerships, or corporations.

A company whose leader is a Licking County or City of Newark elected official, a member of County/City administration, or a member of the Loan Administration Board is not eligible.

(This prohibition shall extend for 1 year from the last date of active service in said positions.

) Eligible Loan Activities: The RLF is only available to help finance fixed assets, which include land, buildings, machinery and equipment, along with limited working capital (only up to 30%).

Ineligible Loan Activities: RLF funds cannot finance existing debts, non-capital equipment, administration, inventory, or training.

RLF funds cannot finance speculative projects or buildings, including those that don’t have tenant commitments for at least 50% of the floor space or where project resources may not cover expenses.

Loan Repayments: Each RLF loan requires a monthly repayment schedule over its term.

Under circumstances unique to a specific project, alternative repayment schedules (such as interest-only or deferred payments) may be arranged to fit the needs of a sound project that requires flexibility.

Late charges will be applied to loan payments that are delinquent 10 days or more.

Loan repayment terms shall be determined in relation to the life of the fixed asset.

Typically, terms of 10-15 years are used for equipment and 15-20 years are used for real estate.

Interest Rates: RLF interest rates may vary according to market conditions and the specifics of a particular project.

The RLF program tries to offer interest rates which are lower than market rates in order to lower overall debt service costs for viable projects.

Typically, interest rates will be based on two-thirds of prime.





Contact Information
Licking County Planning Commission
Address: 40 W Main
City: Newark
State: Ohio

Website: http://www.ci.newark.oh.us/business/Economicdev/pdfs/InvestmentIncentives/Incentives%20-%20Licking%20County/Licking%20Co%20Revolving%20Loan%20Fund.pdf

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