Areas Served: Macoupin county, Illinois
The Macoupin County Board maintains a Revolving Fund (RF) to provide financial assistance to new or expanding businesses in Macoupin County in order to strengthen the community’s economic development through the retention and creation of jobs, stimulating private investment within the county and strengthening the tax base.
Loans will be made to projects which show a significant impact on local employment.
The funds used to establish the RF is money financed by the Illinois Department of Commerce and Economic Opportunity (DCEO).
Money recaptured from existing or new loans is deposited in an RF account by the Macoupin County Economic Development office through the Macoupin County Clerk and County Treasurer’s offices.
1. Eligible Borrowers Any business and/or property owners who are located or expanding in Macoupin County.
The Macoupin County Board is also an eligible borrower, but only for infrastructure improvements (i.e. water, sewer and roads) which will assist a business to retain or create jobs.
2. Eligible Uses of Funds a.
Site development/infrastructure extension costs.
b.
Building construction, renovation, acquisition or improvement.
c.
Leasehold improvements d.
Purchase of new or used machinery and equipment e.
Working capital f.
Land and/or building acquisition.
Projects of a speculative nature and refinancing of existing or private debt are ineligible for funding.
Also the transfer of firms and jobs from a location within the State of Illinois using Macoupin County RF proceeds is prohibited unless it can be shown that the proposed jobs/job opportunities will be lost to another state or country.
3. Maximum Loan Agreement The maximum Macoupin County RF loan amount shall be $100,000 unless waived by the Macoupin County Board.
Macoupin County RF loans will be made on a matching basis.
The RF Review Committee may waive these limits at its sole discretion.
Matching funds preferably will be in the form of a bank loan, but owner equity or supplier financing may be allowed at the discretion of the RF Review Committee.
All matching funds shall be financial contributions (cash).
Funds spent prior to approval of the RF application will not count as a match.
A match of 2:1 will generally be required.
The 2:1 match may be waived by the RF Review Committee, but in no case will the match be less than 1:1. 4. Demonstration of Financial Need The Macoupin County Board when utilizing recaptured Community Development Assistance Program (CDAP) dollars for the State of Illinois may participate with any lending institution and/or source of equity in making Macoupin County RF loans.
Applicant firm and participating lenders must demonstrate a financial need for local CDAP-RF funds.
Financial need can be demonstrated by meeting one or more of the following financial need criteria: a.
CDAP-RF funds are needed to fill the gap between the estimated project cost and what lenders are able and willing to lend.
b.
The estimated return on investment (ROI) exceeds the bank-determined, industry-wide standard.
c.
The banks determine there is insufficient collateral without CDAP revolving fund participation.
d.
CDAP-RF financing is needed to keep the firm in the community (applicant must furnish the bank with detailed incentive letters from other states and detailed cost information/explanations on how CDAP-RF funds equalize the costs between the community site and the out-of-state site, CDAP-RF funds cannot be used to relocate firms from one part of the State of Illinois to another part of the state).
5. Geographic Area Recaptured funds will be expended for projects which are located within Macoupin County.
6. Interest Rates and Terms A minimum fixed-rate (currently 3%) shall be charged on Macoupin County RF program loan.
The participating lender and the applicant/borrower may negotiate any mutually acceptable loan terms.
The term of a Macoupin County RF program loan shall generally be determined by the following classifications: – Purpose Maximum Term – Infrastructure 15 years – Land and/or Building Acquisition 20 years – New Construction 20 years – Purchase of Machinery and/or Equipment 10 years – Leasehold Improvements 7 years – Building Rehab or Renovation 7 years – Working Capital 7 years (NOTE: In no event shall Macoupin County participation exceed the term granted by the participating lender for the same class of asset.
) 7. Collateral Requirements The participating lender shall have the responsibility for determining the applicant’s credit risk for their loan and the county RF Review Committee shall make an independent assessment of the applicant’s credit risk.
If the participating lender requires, it shall be entitled to the senior lien or security interest on any collateral given as security.
In the case where Macoupin County secures the RF loan with identical collateral, its lien or security interest shall be subordinated to the participating lender.
In addition, M
Contact InformationMacoupin County
Address: Macoupin County
City: Carlinville
State: Illinois
Website:
http://www.macoupinpartners.com/html/economic_incentives.html
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