Working directly with your lender is the best
way to obtain access to the Revolving Loan Fund.
General Guidelines
Eligible borrowers include business
or property owners who are locating or expanding in the McLean
County area. Funding can generally be used for site development
and infrastructure extension costs, construction of new facilities
or additions, renovation of existing facilities, leasehold improvements,
the purchase of new or used machinery or equipment and working
capital. Projects of a speculative nature are ineligible
for funding. The minimum amount of funding is $50,000, and the
maximum amount is $500,000.
Job Creation & Retention
One of the key fund requirements calls
for the business receiving funds to create or retain at least one
full-time equivalent job for every $15,000 of funds loaned. In
addition, at least 51 percent of those jobs created or retained
must benefit low to moderate income positions.
Financial Need
Financial need must be met through
one of the following criteria:
Interest Rate and Terms
A minimum fixed rate (currently 3 percent)
shall be charged on a program loan. The participating lender and
the applicant may negotiate any mutually acceptable loan term.
The term of the McLean County loan depends on the type of asset
or purpose it is funding. Generally, terms can range from seven
to 15 years.
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McLean County/Bloomington-Normal
Enterprise Zone PDF
Enterprise Zone Benefits:
Sales Tax Exemption
An exemption of the 5 percent sales
tax (Retailers Occupation Tax) is offered for the building materials
which will be incorporated into real estate within the Enterprise
Zone.
The sales tax exemption is limited to the property
for which a building permit is required and has been stamped
with the Enterprise Zone seal. Purchases must be made from retailers
who are in the State of Illinois.
Income Tax Deductions
Individuals, corporations, trusts and
estates are not taxed on dividend income derived from corporations
doing substantially all their business in a zone or zones. Financial
institutions are not taxed on the interest received on loans for
development within an Enterprise Zone. Businesses may deduct from
taxable income double the value of a cash or in-kind contribution
to an approved project of the designated zone organization.
Tax Credits
A state investment tax credit of .5
percent is allowed a taxpayer who invests in qualified property
in a zone. This is in addition to the regular .5 percent investment
tax credit available throughout the state.
The Enterprise Zone Job Tax Credit allows a business
a $500 corporate tax credit for each job created in the zone
for which a dislocated worker is hired. A minimum of five workers
must be hired to qualify for the credit.
Financing
Business financing is available in
the Enterprise Zones. The Illinois Development Finance Authority
has set aside $100 million of its bonding authority for exclusive
use in zones.
All other federal and state business financing
programs are available for operations located in Enterprise Zones.
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Mid Central Community Action, Inc. PDF
Economic Development / Job Creation Small Business Loan
Program
Mid Central Community Action
is partaking in the Community Service Block Grant (CSBG) Loan
to assist in financing small businesses for either start-up
or expansion projects. The purpose of this loan program is
to create and retain jobs for low-income persons and to promote
economic growth in McLean and Livingston Counties.
The CSBG Loan Program is intended to “fill
the gap”in conventional financing, not to duplicate the
financing of private lenders. The loan program could lend 20
percent to 49 percent of a total loan project at a fixed interest
rate of 5 to 7 percent for up to 10 years. The remaining 51 percent
to 80 percent of the loan package must be obtained through a
local bank (with or without SBA participation) and owner equity.
The Illinois Community Services Block Grant Loan
Program is administered jointly by the Illinois Department of
Commerce and Economic Opportunity, a statewide network of Community
Action Agencies (CAA’s) and Illinois Ventures for Community
Action (IVCA). The program provides long-term, fixed-rate financing
to new or expanding companies. It links federal, state and private
financing by using CSBG funds at low interest in combination
with bank funds and equity. By combining bank financing with
low interest CSBG loans, the program is able to offer below-market
interest rates for up to 10 year terms.
The CSBG Loan Program funds may be used for machinery,
equipment, inventory and/or working capital. Funds may not be
used for land or building purchases, construction or renovation;
those needs would fall under the private lender’s funding.
Potential loan projects must plan to create and
maintain one full-time equivalent job for a low-income person
or persons for every $20,000 (or part thereof) of CSBG loan funds.
The hiring must be completed within the first two years of the
loan. The processing of the loan can take from 60-90 days. There
is a $20 fee for running the credit reports for CSBG loans, and
there is also a 1 percent closing fee.
For further information and/or application forms,
please contact:
Small Business Loan Program
Mid Central Community Action, Inc.
923 E. Grove St.
Bloomington, IL 61701
Phone: (309) 829-0691
E-mail: fiscal1@mccainc.org
SOURCE: Mid Central Community Action, Inc. http://www.mccainc.org/economicDevelopment.htm
Streator Area Enterprise Zone PDF
Enterprise Zone Benefits:
For New Construction, Expansion,
Renovations and Remodeling
1. Property Tax Abatements - Available for commercial or industrial
real property located within the zone for projects which have a building
permit and constitute new construction, renovation or remodeling. Within
LaSalle County, certified projects shall be eligible for a four-year abatement
of approximately 50 percent of the real property taxes attributed to the
improvements and within Livingston County a four-year abatement approximately
10 percent of the real property taxes attributed.
2. Investment Tax Credit - Equal to
half of 1 percent (.5) against state income tax for investment
in "qualified" property (machinery, equipment, real
property) placed in service within the zone.
3. Jobs Tax Credit - A $500 per employee
tax credit on Illinois income tax for hiring employees who are
certified as dislocated workers or economically disadvantaged.
4. Sales Tax Exemption - Exemption of
the 7 percent sales tax on building materials purchased from
a retailer within the Enterprise Zone (City of Streator and unincorporated
LaSalle and Livingston Counties).
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Revolving Loan Fund
The City of Streator Revolving
Loan Fund offers low interest (3 percent) participation loan financing
for projects that demonstrate job creation.
