WHO IS ELIGIBLE TO BORROW?
Applicants must have directly incurred impacts of COVID-19 (positive or negative) or are creating jobs in an area that has been negatively affected (job losses) by COVID-19.
Profit and Nonprofit Businesses
**All require job retention or job creation and location in the six-county region served by ECIGOG: Benton, Iowa, Johnson, Jones, Linn and Washington Counties.
HOW MUCH CAN I BORROW?
$25,000 to $500,000 Although the maximum loan is $500,000, the average loaned award is $100,000.
WHAT ARE THE TERMS FOR BORROWING FROM THE REVOLVING LOAN FUND?
FFE: From five to seven years
Working Capital: From one to five years
Purchase of Real Estate: Up to ten years
WHAT IS THE INTEREST RATE?
0% for the first year; then 2% for the remainder of the term*
*temporary economic recovery terms. This will change is July 2022.
ARE THERE ANY FEES?
There are no fees for the application process. If your application is funded, there is a 2% closing fee that cannot be rolled into the loan.
WHAT FACTORS DOES THE REVOLVING LOAN FUND COMMITEE CONSIDER IN MAKING A LOAN DECISION?
Credit Score of Guarantor
Past Operating Performance (if an existing business); Pro Forma (for new business)
WHAT OTHER REGULATIONS APPLY TO THESE FUNDS?
Applications for the purchase of real estate will be considered on a case-by-case basis. Any required environmental review/Section 106 review must be submitted with the application.
Any specialized installation over $2,000 will require a Davis-Bacon wage determination.
Contact ECICOG for additional information about these and other regulations.
WHAT IS THE PROCESS AND HOW LONG DOES IT TAKE?
Fill out application by the end of the month; application will be reviewed the following month by the Revolving Loan Fund Committee. Applicant is required to present the application to the committee.
The RLF committee either denies the application or recommends funding to the ECICOG Board of Directors. The Board will officially approve or deny the application. This happens a week after the RLF Committee makes its recommendation.
Closing usually happens within 60 days. This depends on drawing funds from the Economic Development Administration (EDA).
Most application time frames from submittal of the application to closing time frames are 30-45 days.
WHO HAS FINAL APPROVAL OF THE LOAN?
The ECICOG Board of Directors has final approval of all ECICOG loans.
Questions to Ask
Before You Apply
FIND AN ANSWER TO ALL OF YOUR QUESTIONS
From big to small, all of your questions will be answered. Now is the time to dive in and begin the process of applying for your Revolving Loan Fund with ECICOG.