SHAWNEE DEVELOPMENT COUNCIL, INC.
"A Community Action Agency"
Serving Alexander, Hardin, Johnson, Massac Pope, Pulaski, and Union Counties in Illinois
Economic Development Loan Program
The Economic Development Loan Program is a revolving low interest loan program funded by the Federal Community Services Block Grant through the Illinois Department of Commerce and Economic Development. The program is designed to assist economic development in the local community and for the purpose of creating jobs for low-income individuals. Loan funds may be used to purchase machinery, equipment and fixtures, inventory and supplies, or to provide working capitol for a new business or business expansion. Services are available to businesses located in or to be located in the seven southernmost Illinois counties.
The general loan program can fund up to a maximum of 49 percent of a project, with the remaining funding coming from the business equity, a local bank, another public lending program, or any combination of these funding sources. Loans may be written for up to a 10-year term with a fixed rate of interest as low as 4.5% APR.
The micro-loan program is for loans of less than $20,000 and is designed to assist entrepreneurs in establishing or expanding their business. The micro-loan program can provide up to 100 percent lending. Micro-loans will also have a fixed rate of interest as low as 4.5% APR.
Job creation is a major component of the Economic Development Loan Program. The creation of job position for person of low-income is a required part of all loan contracts. At least one new full-time job must be created for each $20,000 or any portion thereof borrowed. The required hiring must be completed within the first 24-months of the loan. Fifty percent of the new hires are to be hired during the first 12-month period.
|$0 up to 20,000||1 job|
|$20,001 up to 40,000||2 jobs|
|$40,001 up to 60,000||3 jobs, etc.|
Loan application packets may be obtained by contacting the Shawnee Development Council, Inc. Administrative Office in Karnak.