Revolving Loan Fund

What is the “Revolving Loan Fund” ?

It is a source of locally controlled financing to be used in cooperation with traditional bank loans to assist credit-worthy existing and start-up businesses within the community. The funds were originally provided by a state grant program known as the Community Development Assistance Program (or CDAP). Once received, such grant funds were used to support Gap financed business loans which are now being repaid with interest. Such funds are being deposited into a “Revolving Loan Fund” (or RLF) from which additional loans are being made to help expand present operations or establish new ones within the Villages of Greenup, and Toledo as well as the City of Neoga.

Who’s Eligible to Apply for Assistance ?

Both existing businesses interested in expanding their present operations within the community as well as prospective new investors interested in establishing industrial or commercial operations are eligible to receive RLF loan assistance. The applicant business can be a proprietorship, partnership, land trust or any of a variety of forms of corporations as long as the entity is legally constituted and has the power to enter into the necessary loan closing documents.

What Types of Projects are Likely to Receive Assistance ?

Only creditworthy projects which document a high likelihood of loan repayment ability will be seriously considered under the RLF Loan Program. The project itself must be located within the most current corporate limits of there respective communities (or extra-territorial zone) and must generate (or at least retain) employment opportunities which principally benefit low and moderate-income local residents through employment opportunities.

Amount of RLF Loan

No more than one-third of the project’s total cost may be provided by the RLF loan. At least one full time equivalent job must be created (within one year of loan closing) for each $15,000 in RLF loan assistance.

RLF Rates and Terms

RLF loans will carry with them fixed rates of interest equal to one-half (50%) of the “Prime” rate as published in the Wall Street Journal at the time of the laon closing, but shall not be less than three (3%). The repayment period for RLF loans will generally match the life-expectancy of the assets being financed: