EDA CARES Act Recovery Assistance Revolving Loan Fund Program

EDA CARES Act Recovery Assistance Revolving Loan Fund Program is sponsored by City of Kokomo, Indiana. This opportunity supports mission-aligned projects and measurable outcomes.

The City of Kokomo offers three Revolving Loan Fund Programs, aimed at revitalizing the Kokomo community by providing flexible, low-interest financing to new and expanding businesses.

Applicants may borrow to: construct, expand or convert buildings purchase land and buildings purchase machinery, equipment, furniture, fixtures, materials and manufacturing inventory If you are a business owner interested in the Revolving Loan Funds, please contact the Department of Development at development@cityofkokomo. org or 765-456-7375.

The EDA CARES Act Recovery Assistance Revolving Loan Fund Program provides low interest financing to small and growing businesses in Howard County. The primary targets being: manufacturing, industrial, service and high-tech sectors, but is available to all eligible businesses affected by the pandemic.

The purpose of the EDA CARES RLF is to help prevent, prepare for, or respond to the Coronavirus or other potential pandemics or disaster situations. This award has a particular emphasis on job retention and working capital allocations. Project goals should include the creation or retention of one full-time job for each $40,000 loaned.

Loan amounts typically range from $15,000 to $150,000 with interest rates as low as four (4) points below prime rate. A 2:1 match is preferred and a bank turn-down letter (or equivalent documentation) demonstrating that credit is not otherwise available on terms and conditions that permit the financing to be successful is required.

The Kokomo Business Development Revolving Loan Fund Program provides primary and gap financing to employers in Howard County, focused on manufacturing, industrial, service and high-tech businesses that consist of more skilled or semi-skilled positions in terms of employment. Even though these businesses are the primary focus, all business types that meet eligibility requirements are eligible.

The program is designed for businesses that would like to locate or expand in Kokomo, but have difficulty receiving the full amount needed through conventional lenders. Interest rates on KBD RLF loans are set as low as four (4) points below prime. Project goals should include the creation or retention of one full-time job for each $20,000 loaned for the micro loan that ranges from $20,000 to $60,000.

The macro loan that ranges from $60,001 to $300,000 requires one full time position per $30,000 loaned. A 2:1 match is preferred and a bank turn-down letter (or equivalent documentation) demonstrating that credit is not otherwise available on terms and conditions that permit the financing to be successful is required.

The Emerging Business Revolving Loan Fund Program is targeted toward new and emerging businesses, defined as businesses with 50 or fewer employees, and less than $1 million in expected annual gross revenue. The EBRLF program is designed for businesses that would like to locate or expand within Howard County, but have difficulty receiving the full amount needed through conventional lenders.

Though a 1:1 match is preferred, it is not required. Interest rates are flexible and generally mirror that of the other RLF programs. Project goals should include job creation or retention of one full-time job for each $20,000 loaned.

Loan amounts typically range from $2,000 to $20,000.

Kokomo Business Development Revolving Loan Fund EDA CARES Act Recovery Assistant Revolving Loan Fund Available to all business types in Howard County with an emphasis on manufacturing, industrial, service and high-tech sectors Available to new and emerging businesses in Howard County Emphasis on responding to, preventing or preparing for the economic impact of the Coronavirus or future disaster Available to all business types in Howard County Requires bank turn-down; Bank participation or private match required (2:1 preferred) Bank turn-down not required; Private match encouraged, but not required Requires bank turn-down; Bank participation or private match required (2:1 preferred) Micro loans range from $20,000 - $60,000 Macro loans range from $60,001 - $300,000 Loans range from $2,000 - $20,000 Loans range from $15,000 - $150,000 Flexible interest rates set as low as four points below prime Flexible interest rates set as low as four points below prime Flexible interest rates set as low as four points below prime All programs subject to available funding, and satisfaction of qualifying criteria.

All programs include an application process and final RLF board approval. This institution is an Equal Opportunity Provider and Employer. Discrimination is prohibited by Federal Law.

Complaints of discrimination may be filed with the USDA, Director, Office of Civil Rights, Washington, D. C. 20250.