Business Development Funds are used as secondary financing. Secondary financing is the concept that additional, subordinate financing is essential for certain projects that would not otherwise meet standard underwriting criteria. Applications are analyzed to ensure normal credit is not otherwise available on terms and conditions which would permit successful completion of the project.
The loan is not to exceed 33% of total financing package. There must be at least 10% equity participation from business. City will lend $10,000 per job created and/or retained, not to exceed $150,000. Fixed interest rate 4% below prime (but not lower than 4%). The term mirrors that of the primary lender.
More info:
http://www.ci.peoria.il.us/programs-and-services
Eligibility Requirements and Application
Business Development Fund
Peoria Area Governmental Financing Programs
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Peoria County has a similar program, administered by the EDC for G.A.P. Loans
Secondary financing, not to exceed 40% of total financing package. There must be at least 10% equity participation from business. County will lend $10,000 per job created or retained, not to exceed $150,000. Fixed interest rate 3% below prime (not lower than 3%). Term will be one year for each $15,000 loaned (7 years maximum for loans for inventory and working capital).
The City has made a total of 44 loans since the program began in 1988. Three of those loans defaulted, while the balance have repaid the loan or are in the process of repaying the loan. The program helped retain or create jobs and improve the tax base of the City.
Contact Rachael Parker at 309 494 8646 rparker@ci.peoria.il.usfor more information and assistance on all programs.