Commercial enterprises such as retail service, office and industrial related companies are eligible to apply for and receive financial assistance. 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.
Assist in the retention of our industry and in the start-up or expansion of new businesses.
- Must be credit worthy
- Must comply with the requirements of the program
- Must agree to enter into a loan agreement that specifies the terms and conditions on the loan.
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.
- 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.
- Minimum loan shall be $5,000.00
- Maximum loan amount is $200,000.00.
- City’s portion of the project may not exceed 25% of the total project costs
- Call for current interest rate
- Must demonstrate and ensure that at least one (1) new job will be created or retained for every $10,000.00 in loan funds
- Jobs must be considered full time equivalent and be created within one year from the date of the loan approval.
- Jobs created or retained by business applicants must benefit a minimum of 51% low-moderate income households in the area.
Terms of Loan
- 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
How to Apply
- Must complete the formal application for assistance and file it with the mayor and Revolving Fund Committee
- Must write 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 revolving loan fund or requests for applications can be directed to:
City of West Frankfort
110 North Jefferson
West Frankfort Illinois, 62896