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
• Start-up Businesses
• Expanding Businesses

WHAT CAN I BORROW MONEY FOR?

• Furniture Fixtures & Equipment (FFE)
• Working Capital
• Purchase of Real Estate*

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 IS THE INTEREST RATE?

0% for the first two years; then 2% for the remainder of the term*

*temporary economic recovery terms. This will change is July 2022.

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

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.

IS COLLATERAL REQUIRED?

Yes, there is a requirement that all loans are secured. Collateral may consist of business or personal assets and all loans require a personal guaranty.

WHAT FACTORS DOES THE REVOLIVNG LOAN FUND COMMITTEE CONSIDER IN MAKING A LOAN DECISION?

• Job Creation
• Collateral
• Debt Coverage
• Credit Score of Guarantor
• Past Operating Performance (if an existing business); Pro Forma (for new business)
• Industry
• Management Team

DO I NEED A LETTER OF CREDIT DENIAL?

Normally yes. However, for COVID relief, this is not applicable. After July 2022, this will be reinstated.

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 DO I CONTACT TO GET AN APPLICATION?

You may phone the RLF administrator at (319) 289-0069 or email robyn.jacobson@ecicog.org.

WHO HAS FINAL APPROVAL OF THE LOAN?

The ECICOG Board of Directors has final approval of all ECICOG loans.