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JEFFERSON COUNTY AND
CITY OF STEUBENVILLE

Revolving Loan Fund Program

Jefferson County and City of Steubenville both have Revolving Loan Fund (RLF) programs as economic development tools. The funds are governed by the federal regulations under which they were capitalized. Progress Alliance administers the funds.

The following information is a summary of the Jefferson County and City of Steubenville RLF loans which are available to qualified applicants.


What can be financed?

• Land
• Buildings (existing or new construction)
• Machinery & Equipment (M&E)


What cannot be financed?

• Rolling stock
• Inventory
• Payroll
• Accounts receivable
• Other working capital
• Existing debt (refinancing)
• Developments that will not be owner occupied


How much can be borrowed?

• Up to 33% of fixed assets (land, M&E), OR
• $15,000 per full-time job to be created, OR
• A maximum of $100,000, whichever is less.
• The applicant must provide 10% equity in the project.


What are the rates and terms?

• The RLF is intended to provide low-interest, fixed-rate financing. Rates will be slightly below those available from a bank.

• Terms will not exceed the useful life of the assets being financed. Real estate can be financed over no more than 15 years. M&E loans cannot exceed a 10-year term.

Special Restrictions:

• RLF loans are not designed to replace banks, only fill a financing "gap." Applicants must document a bank rejection without RLF participation. However, bank participation will be Required before final RLF approval.

• Loans must be fully collateralized. RLF may take a lien or mortgage position subordinate to a bank.

• Personal and/or corporate guaranties are required.

• An Environmental Review must be completed on most projects. • Federal Prevailing Wage rates apply to any construction funded with RLF. • At least 51% of jobs to be created must be made available to people from low-to-moderate income households. Applicant cooperation will be required to document. • A project cannot proceed until after the environmental review and loan closing. • The applicant will be responsible for several costs: public notice advertisement, credit report, any appraisals, legal and closing costs. Applicants will be made aware of fees prior to closing. • Loan recipients must provide quarterly job and financial reports.


Approval Process:

• Applicant meets with Progress Alliance staff to discuss the proposed project.

• If project appears feasible to Progress Alliance staff, applicant completes an application and provides all the documentation required as part of the application.

• The Loan Review Board will review the application, historical financial statements and projections, and approve or deny the loan.

• Loan closing occurs.

• Funds are dispersed.


What are eligible applicants?

• Existing businesses

• New start-up businesses

• Manufacturing and other export-based businesses are the priority companies.

• Commercial and service businesses may also be eligible.



PROGRESS ALLIANCE
630 Market Street
Steubenville, OH 43952

www.progressalliance.com


Mike Jacoby, CEcD
Executive Director

Ruth Casey
RLF Administrator

Phone (740) 283-3476
Fax (740) 282-6285
e-mail: progress@progressalliance.com


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