Official Website for Clay County, Iowa
Official Website for Clay County, Iowa
Revolving Loan Fund
The following information is provided to help you determine if your business is eligible to receive loans from the Clay County Revolving Loan Fund.
1. Review the following information to determine your project’s eligibility. If you feel your project is eligible, proceed with step two.
2. Contact Kelly McCarty, President of the Clay County Revolving Loan Fund, or a lending institution located within Clay County for an application form.
3. Complete the application materials, providing all requested information, and submit them to your lender and the Clay County Revolving Loan Fund.
4. Upon receiving the application materials, the Revolving Loan Fund Committee will convene to review the application. The applicant and their lender will be called to participate in a confidential interview process.
5. The RLF Committee will then make a recommendation to the Clay County Board of Supervisors who hold the final authority on granting or rejecting the loan application. The Clay County Board of Supervisors meets every other Tuesday of each month.
A $50.00 application fee payable to the Clay County Revolving Loan Fund must accompany the completed application. The applicant must pay any loan documentation costs.
The purpose of the Clay County Revolving Loan Fund is to further economic development through joint private and public investments which involve the creation of new jobs and income, or the retention of existing jobs and income.
The Clay County Revolving Loan Fund committee and the Clay County Board of Supervisors must determine that an economic benefit to Clay County will reasonably be accomplished before providing any RLF financial assistance. The committee shall give consideration to factors including, but not limited to, the following:
1. The loan fund will be used to assist existing or start-up businesses including areas of manufacturing, retail, and/or service located in Clay County.
2. Revolving Loan Fund resources may be used to attract businesses or to expand existing businesses.
3. Economic impact on Clay County from the loss of jobs associated with employers leaving the county or ceasing operation.
4. Economic impact on Clay County from the creation of new jobs or retention of existing jobs.
5. Quality of jobs and wages paid will be a consideration.
1. Funding which is provided will be treated as public funds.
2. Interest earned on both Revolving Loan Fund loans and investment of unloaned portions of the Revolving Loan Fund will accrue to and remain in the loan fund.
3. Revolving Loan Fund funds loaned will be secured through the use of liens, security agreements, or mortgages subordinate to private lending institutions whenever possible.
4. Lenders who are involved in a Revolving Loan Fund project shall participate in an annual review of the project until the loan is satisfied. After full review, the Clay County Revolving Loan Fund committee will determine if changes in the project need to be made.
5. Borrowers will provide monthly financial statements no later than 30 days after the end of month.
6. These guidelines can be changed or amended by a vote of a majority of members of the Clay County Revolving Loan Fund Committee, with final approval given by the Clay County Board of Supervisors.
1. The Clay County Revolving Loan Fund will be in the custodial care of the Clay County Treasurer, including but not limited to, loan disbursements, receipt and deposit of payments. The Clay County Auditor’s office will be the physical custodian of all permanent records.
2. The Clay County Revolving Loan Fund committee will have the responsibility for determining loan advisability. This includes, but is not limited to, negotiating with borrowers such items
as loan amounts, loan duration, and repayment terms. The RLF committee will then make a recommendation to the Clay County Board of Supervisors. Final loan approval rests with the Clay County Board of Supervisors.
3. Whenever possible, a member of the participating private lending institution shall be a nonvoting participant in the RLF committee loan approval discussions.
4. A majority of the RLF committee must be present to conduct business.
5. The Clay County Revolving Loan Fund committee shall be appointed to three year terms by the Board of Supervisors of Clay County. Terms will be staggered.
6. CEBA or SBA application forms can be used in lieu of the Clay County Revolving Loan Fund Application.
Use of Revolving Loan Funds
Revolving loan funds may be used for the following:
Any other uses deemed appropriate by the RLF committee
Project Participation/Lending Limits
1. Any project located within Clay County.
2. There is a recommended maximum of $10,000 loaned for each job created or retained. Jobs must be created or retained within 24 months and maintained for the duration of the loan.
3. It is suggested the applicant provide a minimum of 75% of the total project cost through equity injection, additional financing, or equivalents.
4. Of the 75% the applicant must provide, a minimum of 12% of the total project cost must be in the form of cash or equivalents.
5. The maximum loan per project will be 25% of the total project up to a maximum of $100,000.
Loan Structure and Terms
1. All principal and interest will be paid back into the Clay County Revolving Loan Fund. A processing fee of $10.00 per payment will be included in the loan payment. All payments will be automatically debited from the borrower’s checking account on the 15th of the month.
2. It is recommended there be a maximum 10-year payback on a loan from the RLF.
3. The Clay County Revolving Loan Fund committee and the applicant and/or their designated representatives will negotiate loan terms.
4. The recipients of the Revolving Loan funds must personally guarantee the loan.
5. The company or individuals receiving Revolving Loan funds must maintain life insurance on the owners with the Clay County Revolving Loan Fund named as beneficiary for the balance of the loan outstanding.
6. If the recipient of the Revolving Loan funds moves the funded business from Clay County, fails to comply with any provision of their specific loan agreement, or any portion of these guidelines, or fails to meet job creation/retention goals offered as justification for use of RLF funds, the Clay County Revolving Loan Fund committee reserves the right to call the loan due, accelerate payment, or utilize other remedies to enforce compliance.
7. Interest rates and project terms may be based on the following criteria:
Interest rates will be reviewed and set by the Clay County Revolving Loan Fund committee for each application.
The term of the loan will also be at the discretion of the committee.