Local
Development Corporation
Small Business Revolving Loan Fund
Loan Policies and Eligibility
Criteria Word
PDF
The Tioga County Small Business Revolving Loan Fund is intended to
provide low cost loans to eligible Tioga County businesses for up to 50%
of project costs. To be eligible, applicants must provide documentation
showing that they are unable to secure an acceptable loan from commercial
lending institutions.
1. Eligible Applicants:
Eligible businesses shall include small manufacturers, tourism-based
businesses and other industries in Tioga County which tend to import
dollars into the county by selling goods and/or services to outside
firms.
2. Ineligible Applicants:
Officers, Board Members, Staff or Blood Relatives of any of the above
representing the Tioga County Local Development Corporation for a period
of one year after leaving these organizations.
3. Eligible Projects:
Loan proceeds can be utilized for projects that result in small
business start-up or expansion, redevelopment of vacant businesses,
business and job retention, modernization or rehabilitation of existing
industrial and manufacturing facilities and utilization of new
technologies.
4. Eligible Activities:
Acquisition and/or improvement of land, building, plant and
equipment; including new construction or renovation of existing
facilities; demolition and site preparation; and working capital.
5. Ineligible Activities:
Speculative activities; purchase or finance equity in private
business; debt consolidation or refinancing; relocation out of Tioga
County.
6. Maximum Loan Size:
$20,000.00 maximum based on the availability of funds. $2,500
minimum.
7. Matching Private Investment Required:
At least 50% of the total project cost must be otherwise provided by
the applicant; applicant must demonstrate a 5-10% minimum equity in the
project.
8. Interest Rate:
5% fixed.
9. Loan Terms:
Three to five years for working capital. Five to seven years for
machinery; seven to ten years for real estate activities.
10. Collateral:
The revolving loan fund may accept a subordinated collateral
position.
11. Job Impact:
One full-time job (37.5 hours) equivalent employee for every $15,000
loaned.
12. Fees:
$150.00 Non-Refundable Application Fee; 1% Service Fee; and Loan
Closing costs.
13. Payment Schedule:
Due the first day of each month; late fee assessed after the 10th day
of the month.
14. Code Compliance:
Required.
15. Environmental Audit:
All applicants must demonstrate compliance with Local, State, and
Federal environmental requirements. Projects involving real estate must
provide a current environment audit.
16. Targeting Criteria:
Job Retention/Creation.
All loans must comply with the requirements of Federal and State laws
concerning civil rights, the environment, flood protection insurance and
access for the physically handicapped.
This institution is an equal opportunity provider.
Tioga County Local Development
Corporation
Pre-Application Word
PDF
Loan
Application Word
PDF
This is an Equal Opportunity Program.
USDA prohibits discrimination in all its programs and activities on
the basis of race, color, national origin, sex, religion, age, disability,
political beliefs, sexual orientation or marital or family status. (Not
all prohibited bases apply to all programs.)
Persons with disabilities who require alternative means for
communication of program information (Braille, large print, audiotape,
etc) should contact USDA’s TARGET center at 202-720-2600 (voice and TDD).
To file a complaint of discrimination write:
USDA, Director, Office of Civil Rights, Room 326-W, Whitten
Building, 1400 Independence Avenue, SW, Washington DC
20250-9410 or call 202-720-5964 (voice and TDD).
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