Revolving Loan Fund
The City of Marengo's Revolving Loan Fund is available to provide financial assistance to new or expanding businesses and to help develop a stronger economic base and expand job opportunities for the benefit of Marengo. The City of Marengo Revolving Load Fund provides affordable supplemental financing for new and expanding businesses in Marengo. Interest rates are less than traditional bank financing and repayment terms are flexible up to 5 years.

Goals:

  • Assist new or existing businesses in the City to create and retain jobs.
  • Increase the City’s property tax and/or sales tax base.
  • Provide businesses with the opportunity to expand.
  • Encourage loans to businesses form area financial institutions by providing supplementary financing.

Eligible Borrowers:

Any Business which is located in or expanding in the City of Marengo and creating or retaining jobs.

Eligible Uses:

  • Construction of building or addition to building.
  • Renovation of existing building.
  • Leasehold improvements.
  • Purchase of new or used machinery and equipment.
  • Working capital.

Job Requirements:

  • For every $15,000 of loan funds one (1) Full Time Equivalent (FTE) job must be created or retained.
  • 51% of these jobs must be available to low-to-moderate income households.

Loan Criteria:

  • Amount - $30,000 minimum to one borrower.
  • $150,000 maximum to one borrower.
  • Amount cannot exceed 45% of the cost of the project.
  • Collateral - Must be secured with adequate Collateral (Will subordinate to bank if necessary).
  • Terms - Maximum of 5 years. Interest Rates will vary with the U.S. Treasury.
    • 3 Year Loan @ Current T Rate + 0 basis points.
    • 4 Year Loan @ Current T Rate + 25 basis points.
    • 5 Year Loan @ Current T Rate + 50 basis points.
  • Guarantees - Personal guarantees of the principals will be required.
  • Repayment - Monthly payments of principal and interest will be required.
  • Fees - $100 application Fee (non-refundable) Borrower will be responsible for any expenses incurred by the City such as filling fees, document preparation, recording fees,etc.

Applications and information are available from local financial institutions or from the following:

Marengo City Administrator
132 E. Prairie Street
Marengo, IL 60152
815-568-7112
or
Marengo-Union Chamber of Commerce
116 South State Street
Marengo, IL 60152
815-568-6680
Committee Members:
Don Lockhart - Mayor - 815-568-7112
Carole Bartman - First National Bank of Marengo - 815-568-7252
John Kretchmer - Harris Bank - 847-669-5151
Mike Hilker - Bank One/Chase - 815-568-3170
Dianna Torman
Above information is subject to change
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