Revolving Loan Fund

The City’s Revolving Loan Fund (RLF) will be created by dedicating $10,000 each year from the economic development monies which the City receives from PMPA.  This fund will be intended to grow over the coming years as loan recipients repay their original loan; allowing larger and more impactful loans to be given out in the future.  In many ways the RLF will function as another grant program, with the caveat that these funds must be repaid.  The recipients of RLF monies will be determined by the Selection Committee and will be given to businesses who would otherwise qualify for one of the City’s Small Business Grants, meeting the City’s definition of a Small Business.  The physical RLF Application would consist of:

  • A Well-Developed Business Plan to include:
  • Proposed startup costs
  • Estimated Annual Operational Costs
  • Estimated Annual Revenue
  • Break-Even Amount
  • Long-Term Outlook
  • List of Direct Local Competitors
  • Proposed business Location in of the two target areas
  • Other areas would be considered
  • Credit Score Check
  • Background Check
  • Letters of Recommendation
  • 50% Match
  • Applicants are required to provide evidence of the ability to obtain a 50% Match ($5,000) in order to apply for and received the RLF
  • Applicants providing a larger private match, up to 100%, will receive a higher level of consideration
  • Verification of the expenditure of matching funds will be required upon project completion
  • Project Details
  • If possible, projects will utilize local labor, contractors, etc. ensuring these funds remain in the local economy
  • Applicants need to submit cost estimates from a certified contractor to justify request

The award process for the RLF would follow the Energy Efficiency Grant award process since both of these programs would be funded from the same source.  (See Application Process on Page 7)

Eligible Projects

Projects eligible for funding under this grant are restricted to what can reasonably be defined as reasonable startup cost, needed business improvement, or non-routine maintenance costs.  Applicants are encouraged to include building improvements in their application.

Fees, Terms, and Limits

Fees

There will be a $50 application fee for the RLF.

Limits

At this time he City’s maximum amount given through the RLF will be $10,000; no loans smaller than $5,000 will be considered.

Terms

Detailed loan terms will be tied to performance standards and developed by the City Attorney, City Manager, and laid out in the grant agreement.  Typical terms would be 3% interest over a 5 year term.

Performance Measurement

Performance Measurement Checklist:

  • Maintain Normal Operating Hours
  • If the business leaves the City within 5 years the grant must be repaid
  • Meet with City Administration Bi-Annually
  • At which City Officials will be provided with sales figures on the financial state of the business (Sales figures to remain confidential)
  • Create at least one additional full time or 2 part time jobs by year 3 or the City may require repayment of the grant award
  • Special consideration will be given to those projects which can reasonably expect to see additional job creation
  • Remain up to date on City Business License as well as Hospitality Tax Reporting
  • Maintain an active Website, Online Presence which allows for online sales
  • Businesses are encouraged to join the Chamber of Commerce and be active participants in the Business Community

Online Application       Printable Application