CAPITAL CATALYST REVOLVING LOAN FUND

SUMMARY

The Capital Catalyst Revolving Loan Fund (RLF) is designed to address a gap in private capital markets for long-term, fixed rate, low down payment, low interest financing. The objective of the RLF is to promote economic development efforts by providing financing to businesses that retain and/or create quality jobs, add new technologies, increase the tax base, and/or diversify the economy. The RLF serves as a stimulant for commercial lending and not as a substitute for private capital.

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Eligibility

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To be eligible, a business must:

• Be located within the seven-county region (Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix) or propose to locate within the seven-county region; and,

• Demonstrate ability to repay the loan.

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Eligible Activities

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• Acquisition of fixed assets including equipment, machinery, furniture, and fixtures;

• Leasehold improvements; building renovation and rehabilitation;

• New working capital, inventory purchases, and supplies; and/or

• Building and/or land acquisition.

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Finance Terms and Conditions

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• Loan sizes from $10,000 to $250,000

• 4.0% fixed interest rate

• Repayment terms are up to five years for working capital; equal to the effective life of the equipment or machinery; and ten years for land or building acquisition.

• Deferrals of principal and/or interest payments may be allowed for a brief period of time.

• Collateral is required.

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

• All customary out-of-pocket fees and legal costs made in connection with the transaction are the borrower’s responsibility.

• Private funds (borrower contribution and/or  bank/credit union loans) may be required as part of the project.