Racine County Loan Programs

zero loan program

The U.S. Economic Development Administration (EDA) entrusted RCEDC to provide financing for Racine County small businesses affected by COVID-19. The goal of this program is to keep workers employed, stabilize businesses, and strengthen our economy. Through this program RCEDC provides essential financing for businesses to continue investing, and creating/retaining jobs, in Racine County.

 

Business Lending Partners (BLP) provides up-front eligibility screening services to determine if a small business meets the general criteria to qualify for a loan.

CONTACT BLP FOR MORE INFORMATION
  • ZERO INTEREST RATE FOR UP TO 2 YEARS
  • ZERO PROCESSING AND CLOSING FEES
  • ZERO PAYMENTS FOR UP TO 18 MONTHS

LOAN TERMS AND ELIGIBILITY

  • WORKING CAPITAL - UP TO 7 YEARS
  • EQUIPMENT - UP TO 10 YEARS
  • REAL ESTATE - UP TO 25 YEARS
  • DEMONSTRATE BENEFIT TO COMMUNITY
  • DEMONSTRATE IMPACT FROM COVID-19
*Formerly known as ZERO Loan Program

Racine Community Benefit (RCB) Fund

This program was designed specifically to assist businesses in Racine County by offering a revolving loan fund in partnership with a bank loan. The program primarily finances real estate projects, equipment purchases and limited working capital needs. The fund offers a below market interest rate, generally 75% of Prime. Its participation cannot exceed either $200,000 or 33% of the total eligible project costs.

Parameters

  • Community Benefit Required:
    Job creation, woman or ethnic minority owned business, etc.
  • Borrower Equity Requirement: 10% of project cost.
  • Loan Amount: Generally up to 33% of the project costs.
*Formerly known as ZERO Loan Program

Fees

  • Estimated $1,600 legal fee
  • 1.5% processing fee
  • Out-of-pocket closing costs​

Terms

  • Below market interest rate
  • Generally 75% of Prime
  • Up to 10-year term
  • Up to 20-year amortization
  • Key man life insurance typically required
CONTACT a Loan Officer
Note: The term of the loan depends upon the items being financed.

Racine Excess Resources (RXR) loan program

The Racine Excess Resources (RXR-RLF) Loan program was designed to address the needs of smaller loans without necessarily requiring a private dollar match. As part RCEDC’s goal of supporting small businesses, and due to the limitations of existing revolving loan funds, the RCEDC Board of Directors agreed to allocate $200,000 for these RLF loans.

CONTACT a Loan Officer

LOAN TERMS AND ELIGIBILITY

  • Up to 1.5 years principal deferrals to provide cash flow relief
  • No required match from a financial institution loan
  • No Legal Fees - loan closings will be completed by BLP staff

Eligible Use of Funds

  • Leasehold improvements
  • Renovations where a first mortgage holder may already exist
  • Exterior improvements
  • Furniture, fixtures and equipment
  • Small working capital term loans

Economic Development Admin. (EDA) Fund

This program was designed specifically to assist businesses in Racine County by offering a revolving loan fund in partnership with a bank loan. The program primarily finances real estate projects, equipment purchases and limited working capital needs. The fund offers a below market interest rate, generally 75% of Prime. Its participation cannot exceed either $200,000 or 33% of the total eligible project costs.

Parameters

  • Borrower Equity Requirement: 10% of project cost.
  • Loan Amount: Generally up to 33% of the project costs.
  • Community Benefit Required: Job creation, woman or ethnic minority owned business, etc.

Fees

  • Estimated $1,600 legal fee
  • 1.5% processing fee
  • Out-of-pocket closing costs​

Terms

  • Below market interest rate
  • Generally 75% of Prime
  • Up to 10-year term
  • Up to 20-year amortization
  • Key man life insurance typically required
CONTACT a Loan Officer
Note: The term of the loan depends upon the items being financed.

Matching Grant Program (MGP) Fund

GRANT REIMBURSES UP TO 50%* OF ELIGIBLE COST –
UP TO $5,000 PER APPLICANT

[DOWNLOAD APPLICATION]

Through funding from the County of Racine, a Matching Grant Program (MGP) was established with the goal of providing a means for existing small and medium-sized companies to obtain the professional services necessary for a strong foundation for continued business growth and to provide jobs for Racine County residents.

Uses

Parameters

  • $5000 annual limit for a business and any of its affiliates
  • Limited to a total of $15,000 grant per business and its affiliates over multiple years
  • Must be a NEW initiatives (not recurring or repeating expenses)
DOWLOAD W-9
RECENT RECIPIENTS OF MGP

Step #1: All of the following must apply

  • Are you a for-profit Racine County company?
  • Operating for more than 1 year?
  • Have less than 200 employees in Racine County?
  • Grossed less than $25 Million in US sales last year?
  • Working with a Partner Organization (see below)?
Partner Organizations:
  • RCEDC (Racine County Economic Development Corporation)
  • Gateway Technical College
  • RAMAC (Racine Area Manufacturing and Commerce)
  • Eligible Independent Consultant
  • WWBIC (Wisconsin Women’s Business Initiative Corporation)
  • SBDC (Small Business Development Center)

Step #2: One of the following must apply

DOWNLOAD APPLICATION

Greater Racine County (GRC) Fund

The Greater Racine County Revolving Loan Fund (GRC-RLF) program was designed specifically to assist existing businesses in Racine County that are affected by the Foxconn development. Additionally, the GRC-RLF is aimed to assist with recruitment of new businesses to Racine County that have a connection to Foxconn or to assist potential suppliers to automate and grow in order to compete for Foxconn business.

ELIGIBLE BUSINESSES

Industries of focus include but are not limited to:

  • Agriculture
  • Construction
  • Manufacturing
  • Professional and Technical Services
  • Transportation and Warehousing
  • Wholesale Trade
  • Others as deemed appropriate by the BLP Loan Committee

Rates & Terms

  • Loan Amount: Typically between $50,000 and $250,000
  • Flexible loan terms
  • Attractive interest rates
  • Principal deferrals

Fees

  • Estimated $1,600 legal fee
  • 1.5% processing fee
  • 0.5% monthly servicing fees
  • Out-of-pocket closing costs

Eligible Use of Funds

  • Land and building purchases
  • Construction
  • Renovation and expansion
  • Site preparation and demolition
  • Leasehold improvements
  • Equipment
  • Borrower Equity Requirement: Typically 10% of project cost, if appropriate
Note: The term of the loan depends upon the items being financed.
CONTACT BLP FOR MORE INFORMATION

Racine Development Group (RDG) Fund

The Racine Development Group (RDG) created a loan fund to promote business development and real estate projects in Racine County, with emphasis on low- and moderate- income neighborhoods. Contributing members include Chase Bank, Johnson Bank, BMO Harris Bank, RCEDC, S.C. Johnson, Tri City National Bank, U.S.  Bank and Wells Fargo Bank.

Eligible Project Costs

  • Land and building purchases
  • Building construction or renovations
  • Equipment, furniture and fixtures purchases
  • Limited working capital
CONTACT BLP FOR MORE INFORMATION

Parameters

  • Borrower Equity Requirement: 10% of project cost
  • Community Benefit Required: Job creation typically required or other positive community impact

Fees

  • Estimated $1,600 legal fee
  • 1.5% processing fee
  • 0.5% monthly servicing fees
  • Out-of-pocket closing costs

Rates & Terms

  • Below market interest rate
  • Up to 5-year term
  • Up to 20-year amortization
  • Key man life insurance typically required
Note: The term of the loan depends upon the items being financed.

Racine County Community Development Block Grant - Coronavirus (CDBG-CV)

The Racine County Community Development Block Grant -Coronavirus (CDBG-CV) Microenterprise Grant Program is to provide economic relief to small businesses with 5 employees or less, who have seen a negative impact on their business as a direct result of the pandemic.

 

The CDBG-CV grant provides up to $12,000 of cash to aid in operational costs, training needs, professional fees, costs related to changing the business model to adapt to current economic conditions, and costs to improve safety during the pandemic.

 

Applications can be downloaded here and must be submitted to grace@blp504.org. Applications will be processed on a first come, first served basis.

ELIGIBLE BUSINESSES

To be eligible for this program the business must:

  • Be for-profit
  • Been in business on or before March 25, 2020
  • Have 5 or less employees
  • Be located in Racine County, outside of the City of Racine
  • Be owned by a low to moderate income household OR majority of employees are making LMI wages.
    *See income eligibility table
  • Have seen a negative impact on their business as a direct result of the Coronavirus pandemic

Process

  • Applications will be processed by the order in which they are received
  • Application will be viewed by an RCEDC Staff member for review of eligibility and processing
  • Eligible applicants will be submitted to RCEDC’s Loan Committee for approval
  • If the grant is approved, applicant documents the use of funds, non-duplication of funds, and LMI
  • RCEDC submits draw request for CDBG funds anticipated monthly
  • Grant recipient signs grant agreement re-certifying as to eligibility
  • Funds are reimbursed to businesses

Qualifying income

Owner qualifies as a low to moderate income level based on the number of household members, whose annual income is less than or equal to the amount listed below OR majority of employees are making less than $43,250/yr.

2017201820192020
Burlington250228216263
Waterford169138150233
Norway76686792
Union Grove34374372
Rochester40393951
Dover43313049
Raymond25263144
Yorkville30212834

Eligible Use of Funds

  • Operational costs
  • Training needs
  • Professional fees
  • Costs related to changing the business model to adapt to current economic conditions, and costs to improve safety during the pandemic
Download Application
Self Certification Form

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