General Information regarding

GEM Revolving Loan Fund

  Applicants will be required to provide:

  1.      Written verification that the applicant has taken advantage of the services offered by the Small Business Development Center (SBDC) regarding business start-up or expansion information and assistance. In certain cases, this requirement may be waived. Contact Bill Auxter, Small Business Counselor and Certified Business Analyst for SBDC, at 800-826-2431 or 419-334-8400.

  2.      Written verification from a private lending institution identifying a gap in the financial package. This verification must be written on the institution's letter head, stating the maximum amount the lender is willing to lend on the business deal in question, and indicating a true gap in the project’s financing.

The Revolving Loan Fund Committee reserves the right to require additional information from the applicant as it deems necessary. All information regarding the application will be protected under the Rights to Financial Privacy Act.

  Appropriate closing costs and/or administrative fees will be determined prior to closing, based upon each individual situation. These fees will be paid by the applicant either prior to closing, at closing, or out of the proceeds of the loan. The actual rate and term of the loan, if approved, will be determined by the Revolving Loan Fund committee.

The Revolving Loan Fund was established to create or retain jobs in business situations where a dire need could be demonstrated. In no way does this program attempt to replace conventional lending institutions as a vehicle for financing business loans. Rather, it is charged to work with private lending institutions, once a gap has been determined, to enable the business deal to reach fruition. Given this scenario, the Revolving Loan Fund will rely on the lending institution to underwrite the project and determine the need, if any, for the Revolving Loan Fund to become involved.

Based upon RLF program guidelines, the owner’s equity in the project must be at least 5-10%, unless it is a start-up, which would require up to 20% equity. Average RLF loan amounts range from $5,000 to $60,000, with a required lender dollar to GEM dollar ratio of 1.5 to 1. At least one full-time equivalent job must be created or retained for every $10,000 lent by the RLF.  

To download a copy of the GEM RLF Application click here

Please feel free to contact Greater Erie County Marketing Group, Inc., at 419-627-7791, if you have any questions or concerns regarding this matter.