Revolving Loan Fund

Starting a new business?

Expanding your existing business?

Purchasing equipment for your business?

Improving the building that is home to your business?

If your answer is “YES” to any of these questions, you may qualify for low interest financing from one of the City of Escanaba’s Revolving Loan Funds (RLFs).   
Consider the following…….

  1. The City’s RLF partners with your local bank to ensure that you receive a total financing package which best positions you to meet your business goals.  The RLF does not compete against your local bank and does not lend funds that your bank would otherwise lend.
  2. The interest rates offered by the City RLF are very competitive.  This is because the RLF is funded with grant dollars and is not a “for profit” entity.  The goal of the RLF is to recycle funds for future projects and not to maximize profits.
  3. The RLF often subordinates its security interest to that of your local bank, thereby improving your risk profile in the eyes of your bank.  RLF involvement could therefore qualify you for a lower rate of interest from your bank.  Alternately, RLF capital could qualify you for bank financing that you might not otherwise qualify for.
  4. The City RLF payment terms can be tailored to match your business’s cash cycle. Seasonal payments and introductory interest only terms are possible through the RLF.
  5. Just like your bank, the City RLF requires that you submit a business plan and/or related financial documents.  Also, like your bank, the RLF requires that borrowers personally guarantee their loans.
  6. Job creation is a priority consideration when evaluating RLF projects.  The number of jobs created or retained directly affects the amount of funds that may be committed to a project.