Revolving Loan Fund
The City of Galesburg offers CDAP 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 financeable conventionally.
To discuss your project’s financing options, please contact Ken Springer at 309-343-1194.
General rules of thumb for CDAP revolving funds:
CDAP RLF funds may provide no more than 50% of the overall project, exclusive of any refinancing of existing debt. CDAP dollars cannot be used to refinance any existing debts.
The amount lent by an RLF may not exceed the current DCEO limit of $15,000 loaned for every full-time-equivalent (FTE) job created / retained by the project.
Speculative project financing is prohibited. Jobs must be created or retained in a timely manner as a result of RF investment in a specific, identifiable project.
At least 51% of the jobs created/retained as a result of the project must meet the U.S. Dept. of Housing and Urban Development (HUD) “Section 8” family income guidelines. Projects funded by RF funds must be monitored on the local level to insure borrowers are meeting the 51% low-to-moderate income goals for each financial assistance project.