Small
Business
Rural Development Loan Program
Description:
In participation with the Rural Development Administration's
Intermediary Relending Program, the Illinois Finance Authority
will finance business facilities and community development projects
in eligible rural areas.
Benefits:
Benefits of the program include:
- Finance up to 75% of project cost – maximum
of $250,000
- Interest rate as follows, with a cap of 6%, whichever is less:
- Up to 5 years: Prime(-)1.25%
- Up to 10 years: Prime(-)1.00%
- Up to 15 years: Prime(-)0.50%
- Up to 20 years: Prime(-)0.25%
- Prime = Wall Street Journal, last business day of month
- Long-term financing – terms up
to twenty (20) years available
Type of Financing:
This program helps businesses in
rural communities with populations of less than 25,000 finance
fixed asset projects. Loan proceeds may be used to finance the
purchase of land to construct or renovate an industrial building
or to purchase machinery and equipment. Real estate projects for
manufacturing facilities and industrial warehousing are preferred.
Eligibility:
Applicant must demonstrate the ability to repay the
debt. Loan maturities of up to twenty years are available (or matching
asset life on equipment). This financing is available to industrial
businesses that create new or retain jobs in Illinois.
Applicant must demonstrate that conventional financing was not
available (at a comparable rate or term) for the project. Only
businesses in non-SSMMA rural areas are eligible for this loan.
Please check with an IFA Funding Manager to determine whether your
project location qualifies.
Fee:
A non-refundable application fee
is due when the application is submitted. A loan commitment fee
is payable to IFA at the time the Board approves the transaction
and a loan servicing fee is due at the loan closing. In most
cases, applications can be reviewed by staff and considered by
the Board of Directors within 30 to 45 days of submission.
Contact:
For a fee schedule and additional information, contact a Funding
Manager at your local IFA office.
- Chicago office: 312.651.1300
- Springfield office: 217.782.5792
- Peoria office: 309.495.5959
- Mt. Vernon office: 618.244.2424
Applications:
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