The Revolving Loan Fund (RLF) was established to provide financial assistance to new or expanding business in Mount Vernon. Use of the funds is governed by a variety of rules and regulation mandated by the State and Federal agencies that provided the original grants to the City.
Eligible borrowers include business or property owners who are locating or expanding in the Mount Vernon area. Funding can generally be used for purchase of land or buildings, site improvements, including infrastructure extension costs, construction of new facilities or additions, renovation and improvements to existing facilities, leasehold improvement, the purchase of new or used machinery or equipment, other fixed assets, inventory and working capital. The minimum amount of funding is $5,000, and the maximum amount is $450,000, unless the applicant is a manufacturer or warehousing and distribution operation, in which case the maximum amount if $1,050,000. The RLF participation in the project cannot be more that 50% of the project.
- Purchase of land, buildings, equipment and machinery and other fixed assets
- Cost of site improvements, including construction of new facilities or additions and infrastructure extension costs
- Renovations and improvements to existing facilities and leasehold improvements
- Inventory and working capital expenses including employee salaries, general operation expenses, and advertising/marketing expenses, except that amounts loaned for such inventory and working capital expenses shall not exceed $450,000.
- Refinancing or consolidation of existing debt
- Paying off a business's creditors
- Paying off personal debt of or salaries to principal officers
- Residential projects and projects of a speculative nature
Job Creation & Retention
One of the key fund requirements calls for the business receiving funds to create or retain at least one full time equivalent job for every $15,000 of funds loaned. In addition, at least 51 percent of those jobs created or retained must benefit low to moderate income individuals.
Interest Rate and Terms
Loans can be made at an interest rate of not less than 3 percent nor more than 10 percent, except for manufacturing or warehousing and distribution projects for which the interest rate cannot be less than 2.75 percent nor more than 10 percent.
Application and More Information
For complete and detailed information about the program and for an application, please contact the Finance Department of the City of Mount Vernon, IL at 618/242-6827.