RBF Inc.
REGIONAL BUSINESS FUND, INC
The Regional Business Fund, Inc., (RBF, Inc.) is a non-profit economic development corporation whose purpose is to promote business and economic development in west central Wisconsin. The RBF, Inc. offers loan funds to business that expand within the region, diversify the economy, add new technology and create quality jobs and capital investment in the region. Below are descriptions of loan programs available.
BUSINESS REVOLVING LOAN FUND
The Business Revolving Loan Fund (RLF) is a flexible source of loan funds for commercial and industrial projects. The purpose is to encourage the creation of quality jobs and to increase the tax base.
ELIGIBILITY
· Be located within the seven county region or propose to locate within the seven county region.
· Create and retain jobs, of which at least 51% will be available to low and moderate income (LMI) persons which can be met by posting job openings with Job Service.
· Demonstrate that it can repay the loan.
Eligible activities include: acquisition of equipment, machinery, furniture and fixtures, and new working capital.
FINANCE TERMS AND CONDITIONS
· Loan size of $25,000+;
· 4% fixed interest rate;
· Deferrals of principal and/or interest payments may be allowed;
· Terms can be up to five years on working capital loans, seven to ten years on machinery and equipment;
· Collateral is required.
APPLICATION PROCEDURE
Interested businesses submit applications to their local County Economic Development Corporation.
DOWNTOWN FACADE LOAN PROGRAM
The Downtown Facade Loan Program provides financial assistance to encourage property and business owners in core downtowns to revitalize downtown commercial buildings within towns, cities, and villages of west central Wisconsin.
ELIGIBILITY
· Be located within designated downtown boundaries of eligible towns, villages, and cities;
· Demonstrate ability to repay the loan;
· Keep property taxes current;
· Provide acceptable design plans.
Eligible activities include: facade renovation; exterior lighting, doors, and graphics; signage, windows, and awnings; other facade or landscape improvements.
DESIGN REQUIREMENTS
Applicants must provide acceptable facade design plans that comply with approved general design guidelines based on the National Trust and Main Street Center or suitable design guidelines prepared and adopted by local governments.
FINANCE TERMS AND CONDITIONS
· Loan size can range from $5,000 to $30,000;
· 0% fixed interest rate;
· Repayment terms up to 15 years;
· All loans shall be secured by a mortgage on the property being rehabilitated;
· All customary out-of-pocket fees and legal costs made in connection with the transaction are the applicant's responsibility.
APPLICATION PROCEDURE
· Review design guidelines provided by community;
· Complete and submit application and design plans to the primary contact at the local government unit (i.e., City/Village Hall);
· Application and design plans are reviewed by loan committee and a decision will be made.
Click here for an application for the Downtown Facade Loan Program
Click here for an application for the Downtown Facade Loan Program
INFORMATION FOR COMMUNITIES
MICRO LOAN FUND PROGRAM
The Micro Loan Fund Program provides small loans to startup, newly established, or growing small businesses. The key objective is to assist business owners, who have traditionally had difficulty accessing debt financing, by affording them another alternative to obtaining credit.
ELIGIBILITY
· Applicants must be located within the seven county region or propose to locate within the seven county region;
· Have annual sales less than $1 million OR have 25 or fewer employees;
· Demonstrate ability to repay the loan.
Eligible activities include: new working capital; inventory purchases and supplies; acquisition of equipment, machinery, furniture and fixtures; leasehold improvements; building renovation and rehabilitation; real estate acquisition; natural disaster recovery.
FINANCE TERMS AND CONDITIONS
· Loan size can range from $5,000 up to $25,000;
· 4% fixed interest rate;
· Repayment terms up to ten years, with the exception of working capital loans which have a maximum term of three years;
· Collateral is required;
· Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business;
· All customary out-of-pocket fees and legal costs made in connection with the transaction are the applicant's responsibility.
APPLICATION PROCEDURE
Interested businesses submit applications to the local County Economic Development Corporation.
Click here for an application for the Micro Loan Fund Program
Click here for an application for the Micro Loan Fund Program
INFORMATION FOR COMMUNITIES
TECHNOLOGY ENTERPRISE FUND (TEF)
The Technology Enterprise Fund (TEF) is a "quasiequity", or a patient debt, revolving loan fund that provides creative financing to new and emerging technology companies.
ELIGIBILITY
· Locating, or agreeing to locate, their primary operation to Barron, Chippewa, Clark, Dun, Eau Claire, Polk, or St. Croix County;
· Being a technology specific business either possessing and/or developing patentable technology or intellectual property;
· Having fewer than 100 full time equivalent employees, a strong market outlook, a comprehensive business plan, solid prospects for full-scale commercialization, and a likelihood to attract follow-on funding;
· Forming an experienced management and technical team that has a meaningful ownership interest in the business;
· Raising at least a dollar-for-dollar (1:1) amount of "fresh" private capital. Prior investments in the form of in-kind support and/or equipment contributions may quality as private match. "Fresh", for this purpose, is defined as being placed in service nine months or less from the date the TEF application is received.
ELIGIBLE TECHNOLOGIES
Any business engaged in the activities of research, development or manufacture of advanced products or materials for use in factory automation, biotechnology, chemicals, computer hardware, computer software, defense, energy, environmental, information, life sciences, manufacturing, medical, pharmaceuticals, photonics, robotics, subassemblies and components, test and measurement, telecommunications, and transportation. An extensive Chart of Qualified High-Technology Businesses will determine technology eligibility and can be viewed here.
Working capital used in the research and development, testing, and/or commercialization of a product process or service.
Equipment and other fixed asset purchases that are essential in the research and development of an innovative technology.
USE OF FUNDS
· Working capital used in the research and development, testing, and/or commercialization of a product process or service;
· Equipment and other fixed asset purchases that are essential in the research and development of an innovative technology.
FINANCING GUIDELINES
· Loans ranging in size from $100,000 to $200,000;
· All loans are risk priced at a variable rate of Prime plus 200 to 800 basis points. The TEF may also require warrants, conversion rights, royalties or other success fees to mitigate risk and provide for appropriate levels of upside participation;
· Loan terms shall not exceed five years. Repayment options, including deferrals and interest-only periods, are negotiable;
· A security interest in all of the company's assets, including the technology associated with or developed during the life of the loan, will usually be required as collateral. In cases where another party owns certain technology, the company must have a proper licensing agreement in place;
· Debt subordination shall be permitted;
· Unlimited personal guarantees are required for any owner with greater than 20% ownership interest in the business.
A $250.00 non-refundable fee is due upon application submission. Upon credit approval and commitment acceptance, a non-refundable documentation preparation fee equal to 1% of the committed capital will be charged. Said fee may be financed form the loan proceeds at closing. All customary out-of-pocket fees and legal costs made in connection with the transaction are the applicant's responsibility.
FOR MORE INFORMATION
Chippewa County Economic Development Corporation
Phone: 715-723-7150
Fax: 715-723-7140
Email:
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