Whether a small business entrepreneur, an owner of a long established retail store, or a small manufacturer, located or willing to locate in our city limits, the City of Mount Carmel Revolving Loan Fund may be what is needed to insure healthy profits and investments.  The fund represents the ideal partnership between the City and area business firms.  Matched by conventional bank/owner equity financing, the resulting program will make available below market financing to qualified business firms within the City of Mount Carmel.

How It Works:

Uses of loan funds are for real property, improvements, equipment and working capital.  Commission-financed projects must also retain or create a significant amount of private sector jobs.  Certain federal restrictions may apply depending on the nature of the proposed project.

Loan Amounts: Minimum/Maximum Loan Amount: $10,000 – $100,000  with fixed or balloon payments

Term of Loan: 3 to 20 year amortization

Matching Requirement: The maximum revolving loan participation will be 33 1/3% or a ratio of $2.00 from the public or private sector for every $1.00 of RLF money.  Projects that request a lower percentage of the revolving loan funds will be reviewed more favorably.  The ratio will include private financing from other lenders including banks, investment companies or private investment on the part of the borrower or other investments.  The City will require a 10% equity injection for projects.

Activity Criteria: Working Capital loans shall not exceed fifty (50%) percent of available loan dollars, while commercial loans will be limited to thirty (30%) percent of the portfolio.  Loans will be primarily for fixed asset financing, although working capital loans may be made.  The RLF shall not be used to subsidize or refinance existing loans.

Job Criteria: One permanent private sector job retained or created for every $10,000 of RLF funds committed.

Bank Fund Rate: Current market rate or below, depending on cost of funds on a fixed or floating basis

Interest Rate: Currently 4% with 0.5% allocated to loan-loss reserves.

Application Process:Interested parties should pick up an application and guidelines at the Mount Carmel City Hall.  Applications are then submitted for review, first by the City Revolving Loan Fund Committee, then the City Council.  Estimated review and approval time is 30 days.