The City of Benton offers a revolving loan fund that bridges the gap between bank financing and owners equity.
The RLF will consider applications which will assist in the retention of the community’s industrial base and assist in the start-up or expansion of new businesses within the corporate limits of Benton. As such, commercial enterprises (i.e. retail establishments, service businesses, office, etc.) and industrial related firms are eligible to apply for and receive financial assistance through the RLF. In order 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 specifying the terms and conditions on the loan.
The city’s RLF funds will be confined to areas located within
the corporate limits of the City of Benton.
Proceeds from a loan extended through the RLF are to be used for CDAP eligible activities. These activities include:
- 1. Purchase of land, buildings, equipment and machinery and other fixed assets.
- 2. Cost of site improvements and infrastructure extension costs.
- 3. Renovations and improvements to existing facilities and leasehold improvements.
- 4. Inventory and working capital expenses including employee salaries, general operation expenses, and advertising/marketing expenses.
RLF funds shall not be used for:
- 1. Refinancing or consolidation of existing debt.
- 2. Paying off a business’s creditors.
- 3. Personal debt or salaries of principal officers.
- 4. Residential projects and projects of a speculative nature are further ineligible for assistance.
The minimum loan through the RLF Program shall be $ 10,000.
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%.
Borrowers must demonstrate and ensure that at least one (1) new job will be created or retained for every $ 10,000 in loan funds approved through the RLF Program. The jobs must be considered full time equivalent and be created within one year from date of 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 to 20 years
- Equipment and Machinery: 7 to 10 years
- Inventory and Working Capital: 5 to 7 years
The prospective borrower must complete the formal application
for assistance and file it with the mayor 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 project,
time frame, number of new employees to be hired, projected
impact on local economy, etc.
Inquiries regarding the Benton Revolving Loan Fund or requests for applications can be directed to:
- Dennis W. Miller , Exe. Director
- Benton West City EDC
- PO Box 575
- Benton, IL 62812
- Phone: 618-435-3427
- Email: edc@bentonwestcity.com
