WHAT WE OFFER
The Small Business Revolving Loan Program is intended to provide gap financing to new and existing businesses within Adams, Brown, Cass, Morgan, Pike, Schuyler and Scott Counties, specifically to those who are unable to obtain full conventional financing, for the purpose of creating and retaining jobs. This target area is the TREDD (Two Rivers Economic Development District) region currently being assisted by the Two Rivers Regional Council. The program provides loan funds for equipment, real estate acquisition and real estate improvement, with a minimum of $5,000 and a maximum of $250,000 to a single borrower. The interest rate will be fixed, within a range from 2%-10%, at a rate to be determined by the Loan Committee. Repayment of principal and interest will be required over a period determined by the loan committee and be based upon the amount of the loan borrowed.
Program Guidelines
- Eligible applicants are business owners operating or intending to operate within the TREDD regional area. The applicant must be operating legally in accordance with all federal, state and local laws and regulations and current with all pertinent taxes, fees and licenses.
- Eligible expenditures of loan funds include; establishing new businesses, growing existing businesses, and economic projects that help create or retain employment. Not eligible for funding is existing debt refinancing.
- Collateral is required. The amount required will be determined on a case-by-case basis by the Loan Committee.
- Funds are disbursed on a first-come, first-served basis.
- The amount the program can approve will not always be equal to the maximum amount due to the availability of funds.
- This program uses public funds and, as such, is subject to an open public process. The Loan Committee meetings and TRRC Board meetings when the applications are discussed are public. Applicants will be aware that their personal and business information could be subject to FOIA requests.
Loan Terms and Conditions
- Minimum loan amount shall be $5,000 and the maximum loan amount is $250,000.
- The interest rate shall be no less than 2% and no greater than 10% as set by the Loan Committee.
Application Process
- Meet with TRRC Economic Development staff to review the scope of the project and receive a copy of the loan application. An application will only be reviewed after receipt of all application materials listed here:
- Business Plan including detailed sources and uses of all funds.
- Business financial statements including 3 years of projections showing loan repayment capacity.
- Business’ current balance sheet and current profit and loss statement for existing businesses
- Resume, personal financial statement and most recent tax return for all principals.
- TRRC will evaluate each application and provide an analysis to the Loan Committee for further consideration. The Loan Committee will consider the application and make a recommendation to the TRRC Board. The Board will take one of the following actions:
- Approve the application. If the application is approved a letter and notice to proceed will be issued.
- Request additional information or changes to be made on the application
- Deny the application. If the application is denied, a denial letter will be provided explaining the reason for the denial.
- An informative award letter must be issued before loan proceeds are disbursed.
- If the project requires a building permit, applicants must receive that permit before work can begin.
- All loan documentation will be prepared by HOMEBANK of Quincy for the benefit of TRRC. Funds will be disbursed upon the written request of the borrower. Depending on the use of funds, if real estate related, a title company may be used to ensure bills are paid and liens are waived.