Revolving Loan Fund

Lake City EDA Revolving Loan Fund

The Lake City Revolving Loan Fund (RFL) is a public source of money from which low-interest, deferred principle payment loans are made for business development projects. This program provides gap financing and may not be used as the primary source of financing for a project. RFL loans range from $5,000 – $25,000. The business owner must contribute 50% to the project. Initial repayment covers interest only with the full principle and any remaining interest owed in five years or fewer.

Eligibility

  • Businesses must be located, or be willing to relocate, within the city limits of Lake City.
  • Land and building acquisition, land improvements, new building construction, building renovation, machinery, furniture, fixtures, and equipment are all eligible uses of the RLF.

Requirements

  • The RLF loan cannot exceed 50% of the total project costs.
  • All construction and renovation must comply with city codes and policies.
  • The applicant must maintain the business within the Lake City municipal limits.
  • The Lake City City Council must approve all RLF loans.

Rates/Terms

  • The term is determined by the RLF Committee and is fixed at 5 years or fewer.
  • Interest rates are set by the RLF Committee and are set to reflect a lower rate than current private lending institutions.
  • The City will typically subordinate to other financing sources when needed.

Download the Lake City Revolving Loan Fund Application packet.

Contact

Contact the Lake City EDA at 651-345-6808, or e-mail info@lakecityeda.com for a loan application or additional information.