The primary function of the Lake County Revolving Loan Fund is to provide short term construction or (5-year M & E) financing to establish or expand eligible industrial or commercial businesses.
The business development must be located within the legal boundaries of Lake County or one of the legal political subdivisions within the County.
ELIGIBLE USE OF FUNDS
Funds from the Lake County Revolving Loan Fund must be used for:
- Acquisition of building(s)
- Acquisition of machinery/equipment
- Acquisition of land only if a structure will be erected
- Leasehold improvements
- New building construction
- Energy Conservation
- Pollution control
- On-site infrastructure
INELIGIBLE USES OF FUNDS
- Working capital
- Rolling stock
- Refinancing existing debt
- Land banking
- Maximum: $2,000,000
- Minimum: $100,000
Construction Loans - There must be a signed commitment, by a responsible financing source, for repayment of the entire loan when an occupancy permit is issued.
Capital Equipment - Maximum of 5 years.
Construction Loans - may be for up to 100%, or limit of repayment (takeout) financing, whichever is less.
Capital Equipment - may be for up to 100% depending on total financing for the overall project.
- Minimum: 3%
- Maximum: 2 1/2 points under current rates at local financial institutions. Within these limits interest determined on a case by case basis.
All loans will be secured by land, buildings, machinery, equipment and, if necessary, by other assets, personal guarantees, letters of credit, etc.
The Lake County Economic Development Commission will seek to obtain the maximum amount of project financing from private and public sources.
Loans are intended to fill a funding gap. Our maximum is normally 20% of a total project. It will provide the amount of assistance necessary and appropriate to make the project go forward.
The goal of the Lake County Economic Development Commission is to have one (1) permanent full-time job created, or retained, for each $30,000 loaned. Job creation must normally take place within 3 years of project completion.
In most cases, at least 51% of the new, or retained, jobs must be for low/moderate income persons. These are determined on the basis of pay, required skill level or family income.
Where assistance is provided for construction, the project must meet the Davis-Bacon prevailing wage requirements.
All projects must meet the State and Federal Equal Opportunity Employment requirements.
Most projects must meet the requirements of the National Environmental Protection Act and related legislation.
A non-refundable fee of $250.00 will be required at the time of application.