Grow Ellsworth County Revolving Loan Fund
A primary objective of Ellsworth County Economic Development is to assist small and emerging private businesses obtain their economic goals. To advance this objective, Ellsworth County Economic Development is taking an active financial role in business development by financing the organization's revolving loan fund. The revolving loan fund should not be seen as competing with traditional lending institutions, but helping potential projects move forward where traditional financing may not be available.
Ellsworth County Economic Development has administered a successful Revolving Loan Fund since 1998 when the organization received a USDA-Rural Business Enterprise grant. To date, over $315,000 has been loaned to new and existing businesses in Ellsworth County through these funds.
GENERAL ELIGIBILITY: The program is open to any client who intends to operate a business in Ellsworth County, Kansas. The business must be located in Ellsworth County and be a for-profit entity.
HOW TO APPLY: Interested applicants should contact Ellsworth County Economic Development. Click here for the application fillable form. The applications shall not be considered a guarantee of funds. Information including but not limited to use of funds, credit score, business plan and viability, collateral, and scoring criteria is reviewed by a financial review board who will make the decision.
JOB REQUIREMENTS: It is the goal of Ellsworth County Economic Development to create or save one job for every $15,000 of revolving loan funds invested. This ration is a guideline and may be amended by the Board of Directors.
USE OF FUNDS: Gap funding for purchasing a building, purchasing equipment for a business, purchasing land for a business, working capital, construction or renovation on a business, special projects
AMOUNT OF LOAN: At the discretion of the Board of Directors and subject to availability of funds
INTEREST: 1% below New York Prime and not less than 3% fixed, and annually adjusted after any 60 month terms
TERMS: Up to 60 months, subject to review and discretion of the Board of Directors
CREDIT SCORE: Business plan, tax returns
APPLICATION FEES: $100 - ECED is pleased to offer a Silver Membership to our organization for one year in exchange for the application fee
LOAN PAYMENTS: The borrower will be expected to make scheduled payments on both principal and interest, unless previous arrangements have been made for a moratorium on principal due because of an expected shortage of cash flow in the initial stages of the project. The arrangements are at the discretion of the Board of Directors. Preferred payment method is direct deposit to First Bank Kansas on the due date.
DEFAULT: Loans shall be determined to be automatically in default if more than 90 days pass without payment, subject to review by the Board of Directors. Legal Counsel if instructed by the Board of Directors shall initiate foreclosure proceedings.
RELOCATION: All projects must occur within Ellsworth County, Kansas, and must remain in place until such time as the loan is repaid.
REPAYMENT: No penalty will be assess for early repayment on principal.
CIVIL RIGHTS: The Ellsworth County Economic Development revolving loan fund shall not discriminate against any applicant due to race, color, national original, religion, age, handicap, or sex.
ENVIRONMENTAL ISSUES: Applicants will be required to supply information regarding the project's effect on the environment.