McLean County Revolving Loan Fund

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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 shall be charged on a program loan. The rate varies from time to time. 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.

Contact the EDC at (309) 661-6332 for more information about this program.