Montgomery County Economic Development Corporation CED Educator
The goal of the Montgomery County Board is to establish a revolving loan fund (RLF) in Montgomery County to benefit new and existing businesses that operate within Montgomery County limits. An original investment of $250,000.00 by the Montgomery County Board from the General Revenue Fund (allocation of money generated from sale of coal rights) was used to start his fund back in 2007, and another $150,000.00 was placed into the fund in 2011. Balance available is determined based on outstanding participation agreements.
Objectives of County Revolving Loan Fund (RLF):
- Create and retain permanent private sector employment,
- Encourage small business start-ups and expansions,
- Stimulate investments in the county
- Leverage public and private investments
New and existing businesses that operate within Montgomery County limits can apply for a revolving loan for eligible projects that include:
- Acquisition of land, buildings, and fixed equipment,
- Working capital and inventory,
- Site preparation and construction, reconstruction, or installation of buildings and fixed equipment,
- Clearance and demolition, removal or rehabilitation of buildings, and improvements.
Financial institutions can request Revolving Loan Funds for specific projects for parties they represent. Requests between $5,000 and $50,000 will be considered. However, the RLF board can increase the maximum participation amount up to 33% of the total project.
The Revolving Loan Fund interest rate is a fixed 2% rate for the duration of the loan plus the participating financial institution’s rate that can be up to 4% above the RLF rate on the Revolving Loan Fund portion of the loan.
City of Hillsboro Revolving Loan Fund
The City of Hillsboro has established a Revolving Loan Fund to assist in financing small businesses located in the City. The purpose of the fund is to help create and retain jobs as well as economic growth for those eligible for assistance.
The fund is intended to help fill the gap in conventional financing, not to compete with conventional finance institutions for private lenders. THe funds are to be used in combination with outside financing and owner equity. A private lender (bank, SBA, etc.) must provide at least 51% of the needed loan.
Projects which may be funded are:
- Purchase of machinery, equipment or inventory
- Working capital as part of an expansion or modernization that will create or maintain employment
- Funds may be used for construction of new facilities or additions, as well as, renovation of existing facilities
Features of the Revolving Loan Fund are:
- No application fee
- No legal fees
- No credit report fee
- No recording fees
- No points charged
- Less interest
- Terms up to (10) years
- Personal guarantees required
For more information on the City Revolving Loan Fund contact Dave Booher, City Clerk at 217-532-5566.