Revolving Loan Fund – North Central Wisconsin Regional Planning Commission
The Regional Revolving Loan Fund (RRLF) provides gap financing to area Wisconsin businesses.
A gap is the difference between what a private lender is willing to lend, and what a borrower needs.
Typically, RRLF money is long-term, has low down payments, and carries lower interest rates than traditional private financing.
RRLF’s do not compete with banks for projects, but rather complement them and other programs in a total financial structure.
ELIGIBLE ACTIVITIES – Acquisition of land, buildings, and fixed equipment; – Site Preparation, construction or remodeling of buildings, or the installation of fixed equipment; – Clearance, Demolition or removal of structures or the rehabilitation of buildings and other such improvements; and – Working Capital INELIGIBLE ACTIVITIES – Refinancing; – Acquisition of rolling stock; – Soft costs: such as design, promotional activities, and legal fees; and – Service based businesses: such as restaurants, day care, retail, resorts, motel, and hotels.
TERMS OF A LOAN – Loan Sizes will range from $10,000 to $150,000. – Interest Rates will be set by the Loan Review Committee, usually below market rates.
– Equity: At least 10% of new or existing equity is necessary for any project.
– Job Creation is required at the rate of one full time equivalent per $20,000 lent