Revolving Loan Fund

The City's Revolving Loan Fund (RLF) program was established to create employment opportunities, encourage private investment, and provide a financing alternative for new business start-ups or expanding existing businesses in the county.  The RLF program includes interest rates and loan maturities that are designed to encourage business development, while providing for recapitalization and growth of the RLF.

Businesses must meet certain eligibility requirements to receive funds from the loan fund program including:

· Businesses must be willing to create or retain at least one full-time equivalent (FTE) job for each $20,000 of loan funds requested; and

· Businesses must make 51 percent of the jobs available to low-and moderate-income individuals.

• Purchase, rehabilitation, renovation, or construction of a building

• Site acquisition and preparation

• Purchase of furniture, fixtures, and equipment

• Financing and working capital

• Tenant improvements

• Buyouts by purchase of assets or stock

The City's Community Development Authority (CDA) and Common Council using the following financing guidelines will evaluate each loan application individually:

LEVERAGE:  At least 50 percent of the total project costs must be funded through private resources, such as loans from financial institutions and/or new equity injections.

LOAN AMOUNT: The amount of funds for any single business shall range from a minimum of $20,000 to a maximum of $100,000.  Requests for loan amounts in excess of $100,000 will be negotiated on a case-by-case basis.

LOAN TERMS: Loan terms are typically one to seven years for working capital; two to ten years for machinery and equipment; and five to ten years for land and buildings.  The county retains the right to adjust individual loan terms in order to facilitate a successful RLF project.

INTEREST RATE: The interest rate on each loan shall be set at 50% of the Prime Rate as published in the Midwest Edition of the 'Wall Street Journal' or 4%, whichever is less.  The interest rate shall be fixed for the loan term.

DEFERRALS: Deferral of principal payments may be provided for up to a maximum of two years from the date of the first disbursement of RLF funds or one-half of the loan term, whichever is less.  Interest only payments during this period shall be required.

COLLATERAL: Collateral requirements will be determined on a case-by-case basis.  The security interest may be sub-ordinated to private sector lenders participating in the project.

For additional information regarding the City of Port Washington Revolving Loan Fund, contact:

Randy Tetzlaff
Director of Planning and Development
100 W. Grand Avenue
Port Washington, WI 53-74

 Telephone:  (262) 284-2600
Email:  rtetzlaff@ci.port-washington.wi.us

Chief Economic Development Planner
Southeastern Wisconsin Regional Planning Commission (SEWRPC)
P.O. Box 1607
Waukesha, WI  53187
Telephone:  (262) 547-6721
Email:  jmeland@sewrpc.org

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