A Business Loan Program designed to facilitate creation of new permanent employment, retention and expansion of existing businesses, and the leveraging of new private investment in the City of Columbus.

Through its participation in the Wisconsin Community Development Block Grant for Economic Development Program, the City of Columbus has capitalized a Revolving Loan Fund (RLF). This fund is designated to make direct business loans on a companion basis with other financing sources (public sector loans, governmental loans/grants, equity, etc.).\

Eligible Activities

Acceptable uses of funds include:
Acquisition of land, buildings, equipment and fixed assets, site preparation and the construction or reconstruction of buildings or the installation of fixed equipment (some assessments may be eligible), and working capital.

Ineligible Activities

Loans will not be made for: refinancing or consolidation, expenditures prior to loan approval, specialized equipment not essential to business operation, residential building construction or reconstruction, routine maintenance, or soft costs such as design, promotional activities and legal fees.

Minimum Requirements for RLF Loan

To be eligible, the proposed project must meet all of the following requirements:
Private fund Leveraging. Must leverage at least one dollar of private funds for every dollar of RLF funds requested.
Job Creation. At least one permanent Full-time Equivalent (FTE) position must be created or retained for every $20,000 of RLF funds requested.
Employment. At least 51 percent of the jobs created or retained must be made available to persons of low to moderate income (LMI) as defined by the Federal government.
Location. Activities financed under the RLF must be located within the City of Columbus. Corporate headquarters may be located elsewhere.
Feasibility. Applicant must demonstrate the proposed project is viable and there is ability to repay the funds.
Project Completion. Projects shall be completed within 24 months from the date of loan approval.

Conditions

Loan Amount. Loan amounts are always subject to availability of funds. There is no set minimum or maximum but generally loans should be for amounts greater than $20,000.
Interest Rate. The rate may be fixed or graduated on a fixed schedule. In no case shall the rate be greater than two percent above the Wall Street Journal prime rate at time of closing.
Term. In no case will the term of the loan be longer than the term of private financing. Maximum terms are:
Real Estate 12 yr. Term/ up to 20 yr. Amortization
Equipment 10 years
Working Capital 7 years
Collateral. The City will seek to have the best collateral position possible to ensure the RLF loans are adequately secured. The RLF is willing to take a subordinate position if it is justified in the loan proposal.
Repayment. Amortization schedules shall be set up for monthly payments. Interest and/or principal payments may be deferred one year, if justified in the loan proposal.

Application

Applications may be submitted at any time and will be processed in the order received. Your Application should include the following items:
Application Form. Information on the project.
Business Plan. Include company history, industry trends, marketing/sales plans, identification of customers, suppliers and competitors.
Information on Principals. Resumes and personal financial statements for all principal owners.
Financial History. Profit and loss statements, balance sheets, cash flow statements and accounting notes for the preceding three-year period (and interim periods as necessary).
Financial Projections. Proformas (a balance sheet and income statement and cash flow statement) for the next three years specifying Revolving Loan Fund(RLF) participation.
Commitments for Private Sources. Commitments of all private and/or public lenders making loans to the project shall be documented. Documentation shall include loan conditions and terms(amount, interest rate, term and security required).
Environmental Assessment (if necessary). Mandated by National Environment Policy Act (NEPA) for all projects which are not exempt or categorically excluded.
Other. Submit specific information on assets to be acquired, construction contracts, etc.

Review Process

The loan application review will include the following steps:
Preliminary Review. City staff or their designate will review the application for completeness, eligiblity, accuracy and creditworthiness.
Committee Review. The Community Development Authority (CDA) will  review loan applications and make recommendations to the City Council.
Formal Review. The City Council will meet to formally review all recommended applications.
Negotiations. Final terms of loan agreements are specified by the City Council.
Closing.
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For more information or to obtain an Application Packet contact:

Boyd Kraemer, City Administrator
105 N. Dickason Blvd.
Columbus, WI 53925
920-623-5900 Fax 920-623-5901
E-Mail: bkraemer@columbuswi.us

Columbus Main Street, CDDC
PO Box 23
Columbus, WI 53925
920-623-5325 Fax: 920-623-5901