Auglaize County Revolving Loan Fund
Part of what makes the Auglaize County Revolving Loan Fund (RLF) so attractive to borrowers is its low fixed rates and low down payments. But best of all, money repaid to the fund stays in the community to be relent to other local businesses. To learn more about the Auglaize County RLF program, click on the questions below:
What kinds of businesses are eligible for an Auglaize County RLF loan?
Eligible businesses must be a for-profit company located within Auglaize County. (back to top)
What can RLF funds be used for?
Funds from the Auglaize County RLF can be used to finance fixed-asset projects such as building and land acquisition, new construction, renovation of an existing facility, and the purchasing of equipment. (back to top)
Are there any other requirements?
Yes. Eligible businesses must commit to creating one full-time job for every $25,000 borrowed. In addition, at least 51% of the full-time jobs created must be made available to persons from low-to-moderate income households. Personal guarantees will be required from all individuals with 20% or greater ownership. Borrowers may also be required to provide an assignment of a life insurance policy to cover the outstanding balance of the loan. Prevailing wage rates apply for any project involving labor. (back to top)
How much can my business borrow?
The RLF takes a second-lien position and can contribute up to 40% of your project costs, with a minimum loan amount of $25,000 and a a maximum loan amount of $500,000. Your business is responsible for at least 10% of the cost, with up to 50% coming from a private lender. (back to top)
What are the rates and terms of the loan?
The interest rates on Auglaize County RLF loans are determined on a project-by-project basis and are fixed for the term of the loan. Terms are a maximum of 10 years for machinery and equipment acquisition and 15 years for real estate projects. (back to top)
Are there any fees?
Yes. The Auglaize County RLF requires an application fee of $500. Attorney and closing fees are also the responsibility of the borrower. (back to top)
Is it difficult to apply?
No. All you need to do is provide us with the same information given to financial institutions for traditional financing and our experienced staff will prepare the application on your behalf. (back to top)
How long is the approval process?
Upon completion of your application, it usually takes no more than two weeks for the loan committee to review your request. Once approved, we forward your application to the Ohio Department of Development for their approval. The RLF does requires an environmental review, which can take between 60 and 90 days for real estate and 5 days for equipment. (back to top)
What happens after approval?
After approval, the bank funds the project in the interim until it is completed. (back to top)
When can my Auglaize County RLF close?
The following conditions must be met prior to closing:
ü Construction/renovation is completed
ü All equipment is in place and operational
ü All bank loan proceeds have been spent
ü You have made your equity contribution
Contact us if you are ready to close your loan. (back to top)
When will I receive the funds from my Auglaize County RLF loan?
Funding occurs immediately upon an adequate closing. (back to top)
How do I apply?
It’s simple. Just call us at 419-222-0130 or contact us by email and we’ll be happy to get your application started. (back to top)