Revolving Loan Fund

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Do You Qualify?
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Do I Qualify?

Eligible Applicants

  • Applications may be submitted by the Chief Executive Officer, Principal or Sole Proprietor of any business or industry wishing to expand or establish a new operation in Vernon County.
  • No member of the Vernon County Board or any other official, employee, or agent of the County who exercises policy, decision-making functions or responsibilities in connection with the revolving loan fund is eligible for financial assistance under this program.
  • No loans will be made which are in conflict with WI Stat 946.13 (Private Interest in Public Contract Prohibited)
  • Applicants shall not be disqualified based on age, race, religion, color, handicap, sex, physical condition, development disability as defined in §51.01(5), sexual orientation or national origin.

Eligible Activities

Program Loans are available (subject to availability of funds) to eligible applicants for the following activities:

  •  The acquisition of land, buildings, and fixed equipment.
  • Site preparation and the construction or reconstruction of buildings of the installation of fixed equipment.
  • Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements.
  • The payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs.
  • Working capital (inventory and direct labor costs only).
  • Purchase of Dairy cows resulting in significant long term increases in capacity to produce milk.

Ineligible Activities

  • Refinancing or consolidating of existing debt.
  • Reimbursement for expenditures prior to loan approval.
  • Specialized equipment that is not essential to the business operation.
  • Residential building construction or reconstruction (unless such reconstruction is intended to convert the building to a business or industrial operation).
  • Routine maintenance
  • Professional services such as feasibility and marketing studies, accounting, management services and other similar services.  Legal services incurred in the closing of a RLF loan are eligible.
  • Other activities that the Loan Review Committee may identify during the administration of the program.

Ineligible Businesses

Program loans shall not be available for the following businesses:

  • Speculative investment companies
  • Real estate investment companies
  • Lending institutions
  • Gambling operations
  • Non-public recreation facilities.
  • Other businesses not serving the interests of the Community.

Minimum Requirements

To be eligible for funding, the propose project must meet all of the following minimum requirements:

Private Funds Leveraged

The applicant must leverage a minimum of one dollar of private funds for every one dollar of RLF loan funds requested.  Matching funds that cannot be disbursed at the time the County funds are needed may be utilized and a later point during the project. (i.e. RLF funds are utilized for the construction of a facility; matching funds are for equipment purchases which would come later.)

Cost per Job Created

At least one full-time permanent position must be created or retained for every $20,000 requested.  At least 51 percent of jobs will be made available to persons of low to moderate income as defined by the Federal Government.  (i.e. Advertising openings at Workforce Development, etc.).  The Committee may consider lower job costs where warranted, (i.e. taking into consideration the type of jobs, hourly wage, etc.).

Low and Moderate Income Jobs

The project shall provide increased permanent employment or will retain existing jobs, which would have been lost locally.  Of the jobs created, at least 51 percent of these jobs must be made available to low to moderate income persons, (as established by the U.S. Housing and Urban Development).  Posting open jobs with Workforce Development fulfills this requirement.  The business is required to have all potential applicants complete an Interviewee/Self Certification Form and provide those documents to the County.

Location

Activities financed under the Program must be located within Vernon County.

Financial Feasibility and Business Viability

The applicant must demonstrate that the proposed project is viable and the business will have the economic ability to repay the funds.  Collateral must be available.

Compliance with Applicable Laws

Applicants shall comply with all applicable local, state and federal laws and codes.

Project Timeline

Vernon County does not refinance project expenditures.

Project Completion

Projects shall be completed within 24 months from the date of the loan approval.  Applicants shall provide the county a project implementation schedule not exceeding 24 months for project completion and job creation.