Low Interest Loans (Revolving Loan Fund)
The City of Granite Falls Economic Development Authority offers low-interest, gap financing loans to businesses interested in relocating, starting-up, or expanding within City boundaries. The purpose of the RLF is to provide financial and technical assistance for the creation and retention of new employment. These objectives may be accomplished through the following means:
- Create/retain permanent private sector jobs to fuel above-average economic growth consistent with environmental protection.
- Investment in technology and equipment that increase productivity and provide for higher wages;
- Leverage of private investment to ensure economic renewal and competitiveness;
- Increase the local tax base to guarantee a diversified industry mix;
- Improve the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs;
- Improve employment and economic opportunities and create a reasonable standard of living; and
- Enhance productivity growth through improved manufacturing or new technologies.
The RLF funds may be used in a variety of ways including examples noted below:
- Provide loans, loan guarantees, interest buy-downs, and other forms of participation, ensuring that RLF funds are matched by private financing.
- Fund strategic investments in renewable energy market development. Any expenditure for external marketing for renewable energy market development is not subject to the matching requirements listed above.
- Provide entrepreneurs with training, other technical assistance, and financial assistance as defined by federal guidelines.
Assistance must be evaluated on the existence of the following conditions:
- Creation or retention of jobs, or the improvement of jobs as measured by wages, skills or knowledge;
- Increase in the tax base;
- Attraction of private funds to the project;
- Incapacity of local communities and finance partners to finance the project;
- Results in higher wage levels or workforce skills;
- Supports development of micro-enterprises, as defined by federal guidelines, through technical assistance or financial assistance.
- Need for assistance to retain existing business;
- Importance of assistance to attract out-of-state business; and
- The project promotes or advances the green economy.
- Note: The assistance cannot meet solely #7 or #8; other conditions must also be present
RLF’s may be used to fund a variety of business activities including:
- Acquisition of land
- Construction or rehabilitation of facilities
- Site improvements
- Utilities or infrastructure
- Machinery and Equipment
- Working capital
In contrast to federal MIF funds, there are industry limitations on how state RLFs may be used. State RLFs may not be used for the operation, construction or expansion of a casino, a sport facility that has a professional sports team as a principal tenant or any firm engaged in retailing merchandise.