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GETTING YOUR BUSINESS FUNDED | REVOLVING LOAN FUND

REVOLVING LOAN FUND

CICD’s Revolving Loan Fund is an option local businesses have to develop or expand. The Fund provides financing assistance to qualified projects in the City of Decatur. The Fund’s purpose is to encourage business expansion, which in turn will create permanent private sector jobs and growth of capital in Decatur. Money in the Fund is used to make low- interest loans in conjunction with conventional loans from private lenders.

ELIGIBLE APPLICANTS AND PROJECTS

  • Business involved in a profit making enterprise.

  • Businesses located within the Decatur city limits.

ELIGIBLE EXPENSES

  • Land acquisition.

  • Site preparation.

  • Building acquisition.

  • Building construction.

  • Renovation, restoration, remodeling.

  • Equipment and machinery.

  • Working capital.

LOAN SELECTION CRITERIA

  • Property in an eligible census tract where there is at least a 60 percent low/moderate income population.

  • Growth potential of business.

  • Probability of success and credit worthiness.

  • Availability of a private sector match.

  • Environmental factors.

  • Potential generation of tax revenues.

  • At least one full time permanent job must be created or retained for each $10,000 borrowed.

AMOUNT OF LOAN

The maximum amount of a loan for any one project is $200,000.00 or 1/3 of the total pro- ject cost, whichever is less. The minimum loan is $10,000.00. Borrowers must use other debt sources for the remaining capital needs.

INTEREST RATE

The minimum interest rate to be charged on Fund monies is set to equal 70 percent of the U.S. Treasury rate for comparable maturities in effect at the time the loan is approved.

TERM OF LOAN

The term of the loan is based upon the use of the loan proceeds and the economic life of the assets acquired. Generally, the term is the same as the term of the private sector loan.

COLLATERAL REQUIREMENTS

The loan generally is secured by the assets ac- quired with loan proceeds. A personal guarantee or other collateral also may be required.

FEES AND COSTS

An application fee of $50.00. Also, any incidental costs incurred by either the applicant or CICD with regard to the loan are the applicant’s responsibility.