The Port Clinton Revolving Loan Fund (RLF) was established by the City of Port Clinton as an economic incentive for businesses seeking to expand or relocate in Port Clinton. The fund allows the City to offer low interest loans that businesses can use for land acquisition, purchase and renovation of existing buildings, acquisition of equipment, machinery, furniture and fixtures, and working capital. Principal and interest payments on old loans are used to replenish the fund and issue new loans so the fund is essentially self-sustaining.
The intent of the RLF is to encourage the expansion and development of viable business activity in the City of Port Clinton. The RLF is targeted to those small businesses that cannot obtain economically-feasible financing because of conventional interest rates and lending/ exposure limits applied by local lending institutions. The RLF can provide the funds that make the project viable by filling the financing gap created by these conditions. Other financial commitments must be in place at the time of application and no loan shall be made from the program where there is reasonable doubt as to the ability of the borrower to repay the loan.
In order to begin offering these loans to eligible businesses, The Port Clinton Revolving Loan Board has developed the guidelines and procedures for the program.
Maximum Loan Amount. Loan amounts up to $10,000 are available.
Interest Rate. Initially, loans are offered with an interest rate of 50 percent of the current prime rate, with a minimum rate of 4%. Market conditions will continually be monitored and as they change, the Port Clinton Revolving Loan Board will recommend adjustments that would be brought to the Port Clinton City Council for approval.
Use of Loan Funds. Loan funds are limited to land acquisition, purchase and renovation of existing buildings, acquisition of equipment, machinery, furniture and fixtures, and working capital for small businesses. Loan funds can also be used for down payment assistance and other gap financing needs.
Repayment Terms. The maximum term for a loan is one (1) to three (3) years. There is no penalty for pre-payment of a loan.
Application Process. Every application will undergo the following review process:
1. Applications are submitted to the Port Clinton City Auditor and reviewed for completeness. Incomplete applications are returned to applicants and no application will be processed until all required information is provided.
2. Completed applications are forwarded to the Port Clinton Revolving Loan Fund Board. This committee is made up of the Economic Development Commission and members of Staff (i.e., City Manager, Finance Director). The committee will review the loan application and associated materials and make a recommendation to the Port Clinton City Council.
3. The City Council will make the final decision regarding each WRLF application at a regularly-scheduled City Council meeting.
Loan Administration. Upon City Council approval, loan documents are executed and funds released. The Finance Department administers the loan and collects payments.
For additional information on the Revolving Loan Fund, please contact Cole Hatfield. City Auditor, at 419-734-5522 ext. 238 or by email at email@example.com.
Link to Revolving Loan Fund Application
Link to Revolving Loan Fund Guidelines