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West Frankfort Revolving Loan Fund
The Revolving Loan Fund will consider applications which will assist in the retention of our industry and assist in the start-up or expansion of new businesses within the corporate limits of West Frankfort . Commercial enterprises such as retail service, office and industrial related companies are eligible to apply for and receive financial assistance through the revolving loan fund. To be eligible for a loan, the business must be credit worthy and must comply with the requirements of the program and agree to enter into a loan agreement which specify the terms and conditions on the loan.
The city’s revolving loan funds will be confined to areas located within the corporate limits of the City of West Frankfort and must be approved by a loan committee set up by the city just for the revolving loan funds.
Proceeds from a loan extended through the revolving loan fund are to be used for CDAP eligible activities:
* Purchase of land, buildings, equipment and machinery and other fixed assets
* Cost of site improvements 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.
Revolving Loan Funds shall not be used for:
Refinancing or consolidation of existing debt.
Paying off a business’s creditors
Personal debt or salaries of principal officers.
Residential projects and projects of a speculative nature.
The minimum loan through the revolving loan fund shall be $5,000.00. The maximum loan amount is $200,000.00. The city’s portion of the project may not exceed 25% of the total project costs. Loans will be made at interest rate of 3.5%
Borrowers must demonstrate and ensure that at least one (1) new job will be created or retained for every $10,000.00 in loan funds approved by the revolving loan fund committee. The jobs must be considered full time equipvalent and be created within one year from the date of the loan approval. The jobs created or retained by business applicants must benefit a minimum of 51% low-moderate income households in the area.
The term of the loan to be made will coincide with the proposed use of the funding for which the loan proceeds will be used to finance. Generally, the following terms will apply:
Land and Building improvements: 10 – 20 years
Equipment and Machinery: 7 – 10 years
Inventory and working capital: 5 – 7 years
The prospective borrower must complete the formal application for assistance and file it with the mayor and Revolving Fund Committee together with a letter of intent addressing the key elements of the project in which loan assistance is being sought. The letter should include a description of the project, estimated costs and expenditures, proposed financial plan for completing the project, time frame, number of new employees to be hired, projected impact on the local economy.
Inquiries regarding the West Frankfort revolving loan fund or requests for applications can be directed to:
City of West Frankfort Economic Developer
2853 Ken Gray Blvd.
West Frankfort , IL 62896
Phn: (618) 218-3226
Fax: (618) 937-1396
Community Council website