CIDP - Central Illinois Development Partnership - <Logo>

Localities:

Economic Development Council of the Bloomington-Normal Area

City of Clinton

Village of Danvers

Village of Dwight

Community & Economic Development Foundation of Ford County

Illinois Valley Area Chamber of Commerce & Economic Development

City of Pontiac

Woodford County

Streator Area Chamber of Commerce & Industry

State of Illinois - Dept. of Commerce & Economic Opportunity

Utilities:

Ameren

Nicor Gas

Private Sector:

Thomas N. Jacob & Associates/The Economic Development Group, Ltd.

Finance & Incentives


Local



Bloomington-Normal/McLean County - top of page

McLean County Revolving Loan Fund     PDF
The Revolving Loan Fund (RLF) was established to provide financial assistance to new or expanding businesses in McLean County. In addition, the fund serves a public policy goal of developing a stronger economic base and expanded job opportunities. Use of the funds is governed by a variety of rules and regulations mandated by the State and Federal agencies that provided the original grants to McLean County.

The mission of the fund is:

    • To assist short-term economic development by supporting projects that create and retain jobs,
    • To encourage growth and involvement of area financial institutions,
    • To assist long-term economic development projects that protect the existing tax base and that wish to expand it and
    • To insure financial security for the fund through appropriate use.

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:

    • Funds are needed to “fill the gap”between estimated project costs and what lenders are willing to lend.
    • The estimated ROI exceeds the bank determined industry-wide standard.
    • RLF funding is needed to keep the firm in the community.

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
- top of page

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.


Ford County - top of page

Tax Increment Financing District
The Jordan Industrial Park (Gibson City) is located within a tax increment financing district. This park is served by rail, and all utilities are available. It is within a 15 to 20 minute drive of I-39, I-55, I-57, I-72 and I-74.

 

 

 

Central Illinois Statistics - <image>