Adams County, through its participation in the Wisconsin Community Development Block Grant (CDBG) Program has retained funds to establish the Business Revolving Loan Fund (RLF). This fund is designed to make direct business loans on a companion basis with other funding sources such as public sector loans or grants, equity, etc. The Adams County Revolving Loan Fund is an initiative authorized by the Adams County Board of Supervisors to serve new and expanding businesses in Adams County.
The Adams County Revolving Loan Fund is a business loan program that is designed to facilitate:
-Recruitment of new business to Adams County
-Creation of new permanent employment
-Retention and expansion of existing businesses
-Leveraging of new private funds in Adams County
The RLF was created to:
-Provide gap financing
-Attract new business
-Encourage development of modern industrial technology, and a safe, healthful work environment in Adams County
The RLF can be used for:
-Acquisition of land, buildings,equipment, and fixed assets
-New construction, expansion, or remodeling of current buildings
-Buy outs by purchase of asset or stock
Loan amounts through the RLF are always subject to the availability of funds. There is no set minimum but generally loans should be for amonts greater than $25,000.
The interst on a RLF loan may be fixed or graduated on a fixed schedule. Interest rates on these loans are very competitive and can sometimes be as low as five percent. At no time shall the interest rate be greater than two percent above the prime rate at the time of closing.
At no time will the term of an RLF loan be longer than the term of private financing. Maximum terms are:
Real Estate - 20 years
Equipment - 10 years
Working Capital - 7 years
Loans shall not be available for the following activities:
-Refinancing of existing debt.
-Reimbursement for expenditures made prior to loan approval.
-Land, buildings, or fixed equipment not essential to the business.
-Residential building construction or reconstruction.
-The repayment schedule shall be set up for either monthly or quarterly payments.
-Payment of interest and / or principal may be deferred for up to 2 years if justified in the loan application. Interest shall accrue during the deferment period and shall be added to the principal amount of the loan.
-Reasonable security will be required for 100 percent of the loan.
Collateral may consist of a first or second lien on all assets to be purchased with loan proceeds, a lien on all other assets owned and used in the business, and personal guarantees of all owners.
- Must leverage at least one dollar of private funds for every one dollar of loan funds requested.
- At least 1 permanent Full Time Equivalent (FTE) position must be created or retained for every $20,000 of funds requested.
- Must demonstrate that the proposed project is not eligible for financing from any other source on comparable terms and that RLF assistance is necessary to remain competitive.
- Must demonstrate that the proposed project is viable and the business will be able to repay the loan.
- At least 51% of the jobs created by the project must benefit low to moderate income pers
- Activities financed under the RLF must be located within the borders of Adams County. Headquarters may be located elsewhere.
- Application shall comply with all applicable local, state, and federal laws, regulations, and ordinances.
NOTE: Must demonstrate that the proposed project is viable and the business will be able to repay the loan. For a complete description of eligibility and all requirements, terms and conditions, see the Adams County Revolving Loan Fund Policies and Procedures Manual.