REVOLVING LOAN FUND
This fund was originally established as part of the State's Community Development Block Grant (CDBG) initiative. The Ottawa Revolving Loan Fund (RLF) is used to stimulate private investment and create or retain jobs, with an emphasis on assisting low to moderate-income (LMI) persons. RLF is intended to assist enterprises that are unable to obtain complete financing from commercial sources. This fund allows the City to make loans to industrial, retail/commercial or service businesses located in the City. Loans have previously been made to COF, Sears, Crist Auto, Fashion Inc, and Dannie Burnett. Available funds are budgeted each year in anticipation they will be loaned.
Each application for financing from the revolving loan fund will be considered on its own merits. Other than the eligibility requirements described above, there are no other preset requirements concerning the type of enterprise, the amount of private investment or owner equity required, the uses of funds, or the structure of the enterprise. There are no minimum or maximum loan limits. Amount of financing is limited to the funds available in the revolving loan fund. There are no application deadlines. All applications are considered when submitted. Applicants should be aware that applications with little or no private investment or owner equity are less likely to be considered viable.
No loans shall be provided to replace existing financing without written approval by the Kansas Department of Commerce and Housing.
Applications for funding by the revolving loan fund must provide sufficient documentation of the nature and purpose of the project to enable the city to assess whether the project will be consistent with the purposes of the revolving loan program and will meet the eligibility requirements for the program.
Applicants must submit a standard CRLF application form or a standard loan application package used by a lending institution involved in the project.
The foregoing application for use of the City of Ottawa CDBG Revolving Loan Fund is hereby made in accordance with the provision of the City of Ottawa policies and procedures for such fund adopted on January 30th , 2019, and with applicable state and/or federal guidelines.
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