City of Portage 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.

 


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 the City of Portage
Through its participation in the Wisconsin Community Development Block Grant (CDBG) Program, the City of Portage 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.
  • Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements.
  • 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 consolidation.
  • 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.

Job Creation - At least one permanent Full-time Equivalent (FTE) position must be created or retained for every $15,000 of RLF funds requested.

Employment - At least 51 percent of the jobs created or retained must be made available to persons of low to moderate income (LMI) as defined by the Federal Government.

Feasibility - 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 24 months from the date of the loan approval. Applicants shall provide the community a project implementation schedule not exceeding 24 months for project completion and job creation and maintain the positions created for 24 months.


CONDITIONS

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

Interest Rate - The rate shall be an intereest rate equal to the rate of return paid by the Local Government Investment Pool (LGIP) at the time that the loan is approved. In the event the loan repayment extends beyond the term of the loan, the interest rate shall increase 2% above the prime rate.

Terms - In any case, the loan shall not have a term longer than the terms of the other private financing in the project.

 

Maximum terms are:

Real Estate   12 year term/up to 20 yr. Amortization
Equipment   10 years
Working Capital   7 years

 

Period of Payment - Terms may include longer amortization schedules with balloon payments. Amortization schedules shall be set up for monthly payments.

Repayment - Payment of interest and/or principal may be deferred for up to one year if merited 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

Applications 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 history, industry trends, marketing/sales plans, identification of customers, suppliers and competitors.

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

Financial History - Three years historical financial statements (profit and loss and balance sheets) for existing businesses.

Financial Projections - Proformas (a balance sheet, income statement and cash flow statement) must cover at least two years, and additional years if below-market interest rates are sought.

Committments from Private Lenders - 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 - Marie Moe, Clerk, City of Portage will review the application for completeness, eligibility, and creditworthiness.

Committee Review - The City of Portage Finance Committee will review the application.

Formal Review - The City of Portage Council will meet to formally review all recommended applications.

Negotiation of Terms - The City of Portage Clerk or the designated consulting firm will contact the applicant to negotiate final terms as approved by the City of Portage Council.

Closing


For more information or to obtain an Application Packet contact:

 

  City of Portage
Marie Moe, City Clerk
115 West Pleasant Street
Portage, WI 53901
Phone: 608-742-2176
E-Mail:
Marie Moe
  OR
  Nancy Elsing, Executive Director
Columbia County Economic Development Corporation
112 East Edgewater Street
Portage, WI 53901
Phone: 608-742-6161
FAX: 608-742-3582
E-Mail:
Nancy Elsing