Revolving Loan
The Lake County Revolving Loan Fund
The Lake County Commissioners have determined that to encourage economic development activity throughout the community, approximately $318,000 in Community Development Block Grant Funds will be used to create a Revolving Loan Fund, to be administered by the Lake County Port Authority.
Eligible Applicants
- Applications may be submitted by the authorized representatives of any business within to establish a new operation ro expand an existing operation in Lake County.
Eligible Activities:
- The acquisition of land and buildings
- Site preparation; the construction and reconstruction of buildings/ the rehabilitation of buildings, including leasehold improvements and facade renovation for commercial and industrial buildings; and the installation of fixed equipment
- Clearance, demolition and the removal of structures
Ineligible Activities:
- Refinancing or consolidating existing debt
- Reimbursement for consolidating existing debt
- Specialized equipment that is not essential to the business operation
- Residential building construction and reconstruction
- Routine maintenance and operating cost (i.e. salary)
- Professional services
- Additional ineligible projects not listed
Minimum Requirements:
- One dollar of private sector investment shall be provided for each dollar of RLF investment.
- The RLF cannot be more than 50% of the total project cost
- A minimum of one full-time equivalent job shall be created and/or retained for each $35,000 of RLF funds requested.
- The applicant shall demonstrate that the proposed project is viable and that the business has the economic ability to repay the funds.
- At least 51 percent of the FTE jobs that will be created and/or retained shall be held by or made avialable to persons who reside in low-and moderate-income (LMI) households as defined by the County with income limits provided by the U.S. Department of Housing and Urban Development.
- Applicants shall comply with all applicable local, State and Federal laws and codes, including the Environmental Release documents.
- All projects shall be completed, all funds expended, and all jobs created and/or retained within 24 months from the date of the RLF loan approval. All jobs shall be maintained for a minimum of 12 months.
Terms and Conditions:
- The amount of funds available for any single business enterprise shall range from a minimum of $10,000 to a maximum of $125,000. Requests for loan amounts outside this range will be negotiated on a case-by-case basis.
- The interest rate on each loan shall be determined on a case-by-case basis by the RLF Committee with a minimum of four percent. The interest rate shall be fixed for the term of the RLF loan.
- Standard terms for RLF loans shall be as follows: 1) machinery equipment and fixtures - 2 to 10 years; b) buildings and land - 5 to 10 years.
- Deferral of principal payments may be provided for a maximum period of one year from the date of the first disbursement of RLF funds. Interest only payments during this period shall be required.
- There are no prepayment penalties
- Collateral requirements shall be determined on an individual basis by the RLF Committee
Loan Fees
- The Lake County Port Authority shall require a loan application fee of one percent of the RLF loan amount, with a minimum of $100.