CCEDC Revolving Loan Fund

Contact Nancy Elsing, Executive Director of the Columbia County Economic Development Corporation at 608-742-6161, for information on this or other available financing options.

Printer Friendly Version


 

A Business Loan Program

Designed to facilitate:

  • creation of new permanent employment
  • retention and expansion of existing businesses
  • the leveraging of new private investment in Columbia County
Through its participation in the United States Department of Agriculture (USDA) Revolving Loan Fund program, the Columbia County Economic Development Corporation (CCEDC) has capitalized a Revolving Loan Fund (RLF). This fund is designated to make direct business loans on a companion basis with other financing sources (public sector loans, governmental loans/grants, equity, etc.).

 


 

ELIGIBLE ACTIVITIES

These include the following uses:

  • acquisition of land, buildings, equipment and fixed assets.
  • Site preparation and the construction or reconstruction of buildings or the installation of fixed equipment.
  • Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvement.
  • Payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs.


 

INELIGIBLE ACTIVITIES

Loans will not be made for:

  • Refinancing or consolidating of existing debt.
  • Reimbursement for expenditures prior to loan approval.
  • Specialized equipment that is not essential to the business operation.
  • Residential building construction or reconstruction.
  • Routine maintenance.


 

MINIMUM REQUIREMENTS FOR RLF LOAN

To be eligible, the proposed project must meet all of the following requirements:

Private Fund Leveraging - Must leverage at least one dollar of non-federal private funds for every dollar of RLF funds requested. Owner must provide at least ten percent (10%) equity of the total project.

Job Creation - At least one permanent full-time or equivalent position must be created or retained for every $20,000 of RLF funds requested.

Demonstration of Need - The applicant must demonstrate financing from other sources for the proposed project, if not available, or cannot be obtained at terms that would allow them to be profitable and service debt and that assistance is required to remain competitive in the industry in which it belongs.

Feasibility - The applicant must demonstrate that the proposed project is viable and the business will have the economic ability to repay the funds.

Compliance - Applicants shall comply with all applicable local, state, and federal laws and codes.

Project Completion - Projects shall be completed within 12 months from the date of the loan approval. Applicants shall provide the community a project implementation schedule not exceeding 12 months for project completion and job creation.

Eligibility Criteria - Any private business, which will employ 50 or fewer new employees and has less than $1 million in projected gross revenue, is eligible.


 

CONDITIONS

Loan Amount - Loan amounts are subject to the availability of program funds.

Interest Rate - The interest rate is negotiable by the CCEDC RLF Committee.

Term - In any case, the loan shall not have a term longer than the terms of the other financing in the project. Maximum terms are:
Working Capital   5 years
Equipment   7 years
Real Estate   20 years

Repayment - Payment of interest and/or principal may be deferred for up to one year if justified in the loan application.

Prepayment - There shall be no prepayment penalties.

Collateral - The committee will seek to have the best possible collateral position possible to ensure that RLF funds are adequately secured.


 

APPLICATION

Applicants may be submitted at any time and will be processed in the order received. Your application should include the following items:

Application Form- Information on the project itself (sources and uses of funds), a documentation of need, and other information.

Business Plan - Includes company information, history, industry trends, marketing/sales plans, identification of customers, suppliers and competitors.

Information on Principles - Resumes and personal financial statements of the principals.

Financial History - Three (3) years historical financial statements (profit and loss and balance sheets) for existing businesses and/or personal tax returns.

Financial Projections - Proformas (a balance sheet, income statement and cash flow statement) must cover at least three (3) years.

Committments for Private Sources - All private and/or public lenders making loans to the project shall be documented. Documentation shall include loan conditions and terms (amount, interest rate, term and security required).


 

REVIEW PROCESS

 

The loan application review will include the following steps:

Preliminary Review - Nancy Elsing, Executive Director will review the application for completeness and eligibility.

Formal Review - The CCEDC Revolving Loan Fund (RLF) Committee will meet to formally review all recommended applications.

Negotiation of Terms - The CCEDC RLF Committee will contact the applicant to negotiate final terms.


For more information or to obtain an Application Packet contact:

 

  Nancy Elsing, Executive Director
Columbia County Economic Development Corporation
112 E. Edgewater Street
Portage, WI 53901

Phone: (608) 742-6161
Cell: (608) 697-0174
E-Mail:
Nancy Elsing