Need help financing a new or existing business? The Cook County Revolving Loan Fund (CCRLF) might be perfect for you. Since its inception in 1988, the CCRLF has distributed $4.5 million to 86 businesses throughout the county.
While county commissioners must approve all loans submitted to it by the CCRLF board, Karen Blackburn, who works in the Auditor’s Office, runs the day-to-day operations and will answer all questions of prospective clients.
Currently the county has $500,000 in the loan fund, said Blackburn. “This money is for current businesses and start-ups. We consider it ‘gap financing’ to close financing between the customer and the bank(s).”
All types of business have benefited from this fund. Blackburn said restaurants, rental housing, sawmills, homebuilders, computer businesses, ski hills, maple syrup companies, etc., have used money to grow or start their enterprises.
“We also support affordable housing for employees of businesses as necessary for continued economic development within the county,” Blackburn said. “Loans made under this program are intended to complement, and not compete with private lending institutions. CCRLF loans are made to supplement your financing package to the extent that conventional financing falls short of your total needs.”
Whether it’s to purchase or build or make improvements, loans can be made for 20 years. Similarly, loans for acquisition, renovation or moving machinery and equipment can be made for 10 years.
Although two loans for $250,000 have been approved, the standard limit has been $75,000 or less. “For loans exceeding $75,000, the county must charge the current market rate of interest, per state statute,” Blackburn said.
The interest rate for a 10-year T-Bond (real estate) have a fixed rate of 1 percent while a fixed T-Bond rate of 1.5 percent over 10 years is the going rate for machinery or equipment.
In order to qualify, two-thirds of the money needed to complete a project must come from a private lending institution while one-third will come from the CCRLF.
How do you know if you will qualify? Submit any and all financial information you have used for the private lending institution portion of your funding to the Auditor’s Office. A meeting will be set up between you and the CCRLF loan committee who will listen to your proposal. If the committee agrees your proposal is appropriate, it will forward your request to the Cook County Board which will vote to approve or not approve the request.
The maximum loan the CCRLF will make is 33 percent of the project up to $100,000. For requests greater than $100,000 the CCRLF may refer you to the Minnesota Community Capital Fund (MCCF). Cook County’s membership in MCCF makes it possible for county citizens to apply for a loan exceeding $100,000.
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