RLF

SUMMARY
The Revolving Loan Fund (RLF) is a flexible source of loan funds for commercial and industrial projects. The purpose is to encourage the creation of quality jobs and to increase the tax base.

ELIGIBILITY

Loan size of $25,000+.

4% fixed interest rate.

Deferrals of principal and/or interest payments may be allowed.

Repayment terms can be up to five years for working capital, seven to ten years for machinery and equipment, and ten years for real estate.

Collateral is required.

Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business.

PROGRAMS

REVOLVING LOAN FUND (RLF)

DOWNTOWN FACADE LOAN FUND

SUMMARY
The Downtown Facade Loan Program provides financial assistance to encourage property and business owners in core downtowns to revitalize downtown commercial buildings within the towns, cities, and villages of West Central Wisconsin.

ELIGIBILITY

DESIGN REQUIREMENTS
Applicants must provide acceptable facade design plans that comply with approved general design guidelines adopted by local governments.

FINANCE TERMS AND CONDITIONS

MICRO LOAN FUND

SUMMARY
The Micro Loan Fund Program provides small loans to startup, newly established, or growing small businesses. The key objective is to assist business owners, who have traditionally had difficulty accessing debt financing, by affording them another alternative to obtain credit.

ELIGIBILITY

Loan size can range from $5,000 to $25,000.

4% fixed interest rate.

Repayment terms up to ten years, with the exception of working capital loans which have a maximum term of three years.

Collateral is required.

Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business.

SUMMARY
The Technology Enterprise Fund (TEF) is a "quasi-equity", or a patient debt, revolving loan fund that provides creative financing to new and emerging technology companies.

ELIGIBILITY

TECHNOLOGY ENTERPRISE FUND

EDA REVOLVING LOAN FUND

SUMMARY
The EDA Revolving Loan Fund is designed to address a gap in private capital markets for long-term, fixed rate, low down payment, low interest financing. It was initially targeted to businesses affected, directly or indirectly, by the 1993 floods or to value added agriculture businesses located in the Counties of Barron, Chippewa, Clark, Dunn, Eau Claire, Polk and St. Croix. The fund serves as a stimulant for commercial lending and not as a substitute for private capital.

FINANCING GUIDELINES

APPLICATION PROCEDURE
Applications will be initiated through financial institutions after conference with the RBF, Inc. The application packet must include a business plan or feasibility study, project description, market projections, and financial statements.

Loan size can range from $100,000 to $250,000.

Loans are priced at an adjustable rate indexed to Prime, plus or minus an interest rate margin that is dependent on risk. The TEF may also require warrants or royalties to mitigate risk and provide for appropriate levels of upside participation.

Repayment terms shall not exceed five years. Repayment options, including deferrals and interest-only periods, are negotiable.

A security interest in all of the company's assets, including the technology associated with or developed during the life of the loan, will usually be required as collateral.

Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business.

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Be located in, or propose to locate in, West Central Wisconsin (Counties of: Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix).*

Create and/or retain jobs.

Demonstrate ability to repay the loan.

Eligible activities include: acquisition of equipment, machinery furniture and fixtures; new working capital; site improvements; land and building acquisition; new building construction or building renovation.

*Some communities within these counties may not be participating.

APPLICATION PROCEDURE
Interested businesses complete and submit applications to their local County Economic Development Corporation or directly to the West Central Wisconsin Regional Planning Commission.

FINANCE TERMS AND CONDITIONS

Be located within designated downtown boundaries of eligible towns, villages, and cities

Demonstrate ability to repay the loan.

Property taxes must be kept current.

Provide acceptable design plans for building renovation.

Eligible activities include: facade renovation; exterior lighting, doors, and graphics; signage, windows, and awnings; other facade or landscape improvements.

Review design guidelines provided by community.

Complete and submit application and design plans to the primary contact at the local government unit (i.e., City/Village Hall).

Application and design plans are reviewed by local loan committee and a decision will be made.

APPLICATION PROCEDURE

Loan size can range from $5,000 to $30,000.

0% fixed interest rate.

Repayment terms up to 15 years.

All loans shall be secured by a mortgage on the property being renovated.

Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business.

Be located in, or propose to locate in, West Central Wisconsin (Counties of Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix).*

Have annual sales less than $1 million OR have 25 or fewer employees.

Demonstrate ability to repay the loan.

Eligible activities include: new working capital; inventory purchases and supplies; acquisition of equipment, machinery, furniture and fixtures; leasehold improvements; building renovation and rehabilitation; real estate acquisition; natural disaster recovery.

*Some communities within these counties may not be participating.

APPLICATION PROCEDURE
Interested businesses complete and submit applications to the primary contact at the local government, the local County Economic Development Corporation, or directly to the West Central Wisconsin Regional Planning Commission.

FINANCE TERMS AND CONDITIONS

Be located in, or propose to locate in, West Central Wisconsin (Counties of: Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix).

Be a technology specific business either processing and/or developing patentable technology or intellectual property.

Have fewer than 100 FTE employees

Raise at least a dollar-for-dollar (1:1) amount of private capital. Prior investments in the form of in-kind support and/or equipment contributions may qualify as private match.

Eligible activities include: working capital used in the research and development, testing, and/or commercialization of a product, process or service; equipment and other fixed asset purchases that are essential in the research and development of an innovative technology.

ELIGIBLE TECHNOLOGIES
Any business engaged in the activities of research, development or manufacture of advanced products or materials for use in the technology industry.

FINANCING GUIDELINES

Loans sizes are in the $10,000 to $100,000 range.

A minimum of one job created/retained per $10,000 of EDA revolving loan funds.

$2 of private financing to $1 of funds (overall portfolio).

Borrower shall provide minimum equity of 10% of the total project cost.

Terms are up to 15 years on real estate; expected life for equipment and machinery; and up to seven years for working capital.

Interest rates are negotiable and based on need. The minimum is 4 points below prime and never less than 4%.

Repayment schedules are based on the borrower's credit needs, but deferrals may be allowed if a need is demonstrated.

The principal lending institution must provide a credit analysis of applicants.

Businesses must agree not to discriminate in hiring practices, not to relocate the business from one labor area to another, and must pass an environmental review.