Revolving Loan Fund
The City of Galesburg offers multiple revolving loan fund products to fill gaps in eligible commercial projects in the City of Galesburg on a case-by-case basis. With a private-sector lender in the lead position, the city can support deals that may not be able to be financed conventionally.
To discuss your project’s financing options, please contact Ken Springer at 309-343-1194.
General rules of thumb for Galesburg’s loan funds:
City lending caps at 40% of the total project costs or $250,000 maximum. City funding is also based on job creation and wages paid. The amount a borrower is eligible to borrow scales with wage rates paid to employees. Companies creating higher-paying jobs can borrow more per-job. City funds are flexible in their use and can be used for things like working capital, inventory, fixtures, equipment etc. City financing dollars cannot be used to refinance any existing debts.
Speculative project financing is prohibited. Jobs must be created or retained by borrowers within a 24-month period of funding. Companies are required to supply a comprehensive set of financials in order to be considered for funding.
Interested borrowers are encouraged to contact conventional lenders first. Since the City cannot finance more than 40% of any given project, conventional financing through a bank or credit union must be part of your project. City funding will match the interest rate and term offered by participating conventional lenders. All borrowers must be able to contribute at least 10% of their project’s costs in cash equity at the time of closing.