• Jan 16, 22
• spencergregory
• Revolving Loan Fund Directory
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The City of Lorain has established a Revolving Loan Program as a financial incentive to eligible businesses to establish operations in the City of Lorain, Ohio.

OBJECTIVES: A.

Stimulate development and expansion of new and existing small and medium-sized businesses located within the City of Lorain.

B.

Provide incentives to private-sector financing sources, to encourage job creation and retention and increase the tax base for the City of Lorain.

ELIGIBLE APPLICANTS: A.

Applicant must be a for-profit sole proprietorship, partnership, limited liability company, or a corporation.

B.

Manufacturing, wholesaling or commercial enterprises are eligible when, in the discretion of the Loan Committee, sufficient new jobs will be generated to warrant awarding the loan.

C.

Real estate investment is limited to owner/user applicants only.

ELIGIBLE ACTIVITIES: A.

Land costs, including engineering, legal, grading, testing, site mapping and related costs associated with the preparation of land.

B.

Building costs, including acquisition, engineering, architectural, legal and other soft costs related to construction or rehabilitation.

C.

Acquisition of or improvements to an existing structure including, but not limited to, the rehabilitation, renovation or remodeling necessary to conduct business in said structure.

D.

Purchase of machinery, equipment, furniture and fixtures, including installation and delivery.

E.

Working Capital.

INELIGIBLE ACTIVITIES A.

Debt refinancing; B.

Real estate speculation; C.

Rolling stock (i.e. vans, trucks, vehicles).

LOAN TERMS: A.

Private-sector contribution.

Each loan shall be made in conjunction with private sector financing.

B.

Applicant’s contribution.

Each project shall be structured with an equity injection of not less than ten percent (10%) of the total project coSt. C.

Loan amount.

Maximum loan amount shall be forty percent (40%) of total eligible project costs or Two Hundred Fifty Thousand Dollars ($250,000), whichever is less.

D.

Term of loan.

If loan to applicant is secured by real estate, term shall be a maximum of fifteen (15) years, or such length of time as determined by the Loan Review Board so that repayment will not create a financial hardship for borrower.

E.

Interest rate.

Interest rate shall be a fixed minimum of five and one quarter percent (5 ¼%) or maximum of three percent (3%) less than the prime rate with payments computed monthly.

Rate will be determined by Loan Review Committee based upon project selection criteria.

F.

Loan Security.

Applicant’s loan must be secured by a mortgage on real estate and/or a perfected security interest in machinery and equipment.

Personal Guarantees are always required, and the Loan Review Committee may require additional collateral such as a mortgage on personal real estate and/or other personal assets with defined equity.





Contact Information
Lorain Development Corporation
Address: 200 West Erie Ave
City: Lorain
State: Ohio

Website: http://www.cityoflorain.org/economic_community_development/incentive_programs

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