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Overview
The Clarion Partnership for Growth (PFG) Commercial Development Revolving Loan Fund ("RLF") is a pool of money, given to the PFG from the City of Clarion, from which loans can be made to businesses. The Loan fund is designed to provided gap or incentive financing to assist "for-profit" businesses that are starting, expanding or improving their business. The Loan Fund is not a primary source of capital for development projects and is not intended to compete with local banks.
The Loan Fund will be capitalized from city tax increment financing dollars. The Loan Fund will be controlled by a local committee with loan decision-making responsibility. Decisions will be based on pre-determined requirements and a review of a standard loan application. With a goal of stimulating economic development, the loan program provides new, attractive financing that has not previously been available in Clarion.
What is the RLF used for?
Financial assistance from the RLF shall be used in conjunction with the owner’s equity, commercial loans and state assistance for the following purposes:
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Real property acquisition |
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Real property construction & rehabilitation (improvements) |
Purchase of equipment for the business
Who is eligible?
With approval of the RLF Committee, any project deemed eligible for assistance, and located or to be located within the TIF district. The RLF contribution to an approved project may be up to, but shall not exceed 33% of the total project or $5,000, whichever is the lesser amount.
Loan requests will seek to leverage a minimum of two private dollars for every one loan fund dollar.
Applicants must provide evidence that private financing has been secured and committed in a sufficient amount to cover the private portion of the loan package. If conventional financing is not required, the applicant must demonstrate the ability to repay the loan.
How is the loan structured?
The RLF, after consultation and recommendations with the primary lenders in the project and the advisory councils, may award applicant financial assistance for a project in the form of: |
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Short term loans (1-5 years) with an agreed upon low interest rate and repayment plan |
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Participation in a loan made by a commercial lender with an agreed upon payment schedule. |
The Loan Committee, prior to approving a loan, shall give serious consideration to the following:
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Benefits to the community |
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Number of jobs created or retained |
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Ratio of other dollars compared to requested loan fund dollars |
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Borrower’s personal financial commitment to the project |
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Feasibility in compliance with the business plan |
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Repayment schedule proposed |
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Availability of RLF monies |
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Borrower’s business experience and past history |
For more information about the Revolving Loan Fund you may contact the Clarion Partnership for Growth-515-532-2256
This Fund is not intended to be a sole source or primary source of funding for a project; it serves as supplemental funding assistance. Funds may not be used by the applicant for speculation on real estate, stocks, bonds, commodities or any similar purpose; nor shall funds be used for personal conveniences such as automobiles, living quarters, or other non-business luxuries.
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