Revolving Loan

Revolving Loan Fund Goals and Objectives

The Revolving Loan Fund was established to provide financial assistance to new or expanding businesses in the City of Greenville and to secure public benefit for the residents of the City of Greenville by developing a stronger economic base and expanded job opportunities. Use of the funds is governed by a variety of rules and regulations mandated by the State and Federal agencies that provided the original grants to the City of Greenville as well as policies adopted by the City Council of the City of Greenville.



The Revolving Loan program is in place to:

  • Assist short-term economic development by supporting projects which create and retain jobs.
  • Encourage growth and involvement of area financial institutions through joint efforts to make feasible projects which would otherwise not be undertaken (through written agreements with participating institutions).
  • Assist long term economic development by supporting projects which protect the existing tax base and which seek to expand it.
  • Insure the financial and political security for the Revolving Loan Fund through appropriate due diligence in the use of funds

Revolving Loan FAQs

Who Is Eligible?

Any Business and/or Property Owners who are locating or expanding in the City of Greenville area. The City of Greenville is also an eligible of borrower, but only for infrastructure improvements (i.e., water, sewer, and roads) which will assist a business to retain or create jobs.

How Can Revolving Loan Proceeds Be Utilized?

  • Site Development
  • Construction of New Facilities
  • Construction of Addition to Current Facilities
  • Renovation of Existing Facilities
  • Leashold Improvements
  • Purchase of New or Used Machinery and Equipment
  • Working Capital

What is an Ineligible Expense?

  • Projects of speculative nature
  • Title transfer of firms and jobs from a location within the City of Greenville to another community
  • Title transfer of firms and jobs from a location within the State of Illinois to another state

What is the Minimum I Can Borrow for my Business?

The minimum loan amount available is $5,000

What is the Maximum I Can Borrow for my Business?

The maximum possible loan is $750,000, however, that amount is based on availability of funding.

Will I Need Other Funding?

Yes. The Revolving Loan Fund is used as a gap financing tool.  For example, any successful application for this program requires a matching financial contribution.  For example, a 2:1 match is generally required.  The 2:1 match requirement can be waived by the Revolving Loan Committee, but in no case will the match be less than 1:1.  A match of 1:1 will be allowed if the Revolving Loan request is under $25,000.  A general rule of thumb for the submittal of a successful application is that the City of Greenville's Revolving Loan program will be limited to 1/3 (one-third) of the project.

What are the Terms of a Revolving Loan?

A minimum fixed-rate (currently 3 percent) shall be charged on a City of Greenville RLF portion of the loan. The participating lender and the applicant/borrower may negotiate any mutually acceptable loan terms. The term of a City of Greenville RLF program loan shall generally be determined by the following classifications (NOTE: In no event shall City of Greenville RLF participation exceed the term granted by the participating lender for the same class of asset):

Purpose                                                                                Maximum                 Term
Infrastructure (water, sewer, roads)   15 years       or          less
Land and/or Building Acquisition                                        20 years  or  less
New Construction                                                                     20 years  or  less
Purchase of Machinery and/or Equipment                            10 years  or  less
 Leasehold Improvements   7 years  or  less
 Building Rehab or Renovation                                                 7 years  or  less
 Purchase of Inventory  7 years  or  less
 Working Capital    7 years  or  less












How Do I Show My Business's Financial Need (Application Requirements)?

1.        Complete Application (form at link below)

2.        Related Documents Needed

Lender Committment Letter
Statement of Loan Approval and need for Revolving Loan participation by authorized lending officer or committee
Specified dollar amount of loan
Specified loan term
Specified interest rate from participating lender
Collateral or security requirements from participating lender
Other special conditions of laid out by the participating lender

3.        Borrower Commitment Leter

Description of the project
Total project cost
Number of jobs created/retained and benefit to low/moderate income persons
Type of jobs to be created/retained and wage scales
Time Frame for job creation
Name of lender making commitment
Amount of equity if project is a start-up business
Statement that borrower can begin project implementation immediately upon approval of City of Greenville Revolving Loan approval


4.        EnvironmentaReview ChecklisRequirements

Applicable in some cases (i.e. construction projects). See application located toward the back for instructions.
What Other Limitations or Requirements Are In Place for the Program?

Geographic Limitations: Loans will be solely limited to projects which are located within the corporate limits of the City of Greenville or which are determined to principally benefit residents of the City of Greenville.

Collateral Requirements: The participating lender shall have the primary responsibilty for determining the applicant's credit risk and, if it requires, shall be entitled to the senior lien or security interest on any collateral given as security.  In the case where the local government secures the Revolving Loan with identical collateral, its lien or security interest shall be subordinated to the participating lender.  Additionally, The City of Greenville will generally require a personal guaranty on Revolving Loan Program loans.

Origination Fee: An origination fee of up to one percent of the amount requested may be charged by the City of Greenville and is payable at closing.  In addition, the City of Greenville may charge a $100 fee to cover application costs (which include addressing state and/or federal mandates).

Start-Up Businesses: Loans to start-up businesses require 20% (twenty percent) equity.

Existing Debt: Revolving Loans cannot be used to finance existing debt.

Code Compliance: Upon completion of any construction activities, the applicant's property must comply with all applicable code, permit and license requirements of the City of Greenville.

Bad Loans: In the event of a bad loan, legal steps will be taken to recover the Revolving Loan funds.

Loan Call Provisions: Failure to abide by the City of Greenville Revolving Loan Program guidelines or administrative guidelines or procedures can result in calling the Revolving Loan at the committee's request.  Also, the local government can call the Revolving Loan due and payable in the event of:

1) The transfer of substantially all the borrowers assets to any third party;
2) Bankruptcy or insolvency of the borrower; 
3) Cessation of the conduct of active trade or business in the City of Greenville by the borrower for any reason, including but not limited to, fire and other City of Greenville casualty.
4) Inability to meet the obligations for job creation/retention as originally stated.