A Revolving Loan Fund Providing Affordable and Flexible Gap Financing for Businesses in Crawford, Monroe, and Vernon Counties.
Why was the CMV Growth Development Fund Created?
The Mississippi River Regional Planning Commission and CMV Growth Development Fund was originally formed to provide loans to businesses within Crawford, Monroe and Vernon Counties to assist in long term economic recovery from the Flood of 1993. As those loans were repaid they again were loaned to other businesses in the three county area thus creating a self- perpetuating revolving loan fund - RLF.
The original funding came from the U.S. Department of Commerce-Economic Development Administration grant in the amount of $146,400. This was paired with a local match of $26,000 capitalizing the CMV Fund at $172,400.
What are the goals of the fund?
The economic development goals of the Fund are: 1) To provide affordable and flexible gap financing to businesses that leverage additional private investment and lending; 2) To help businesses retain and expand their operations; 3) To help create and retain jobs, and; 4) To increase personal income levels.
How will this fund achieve its goal?
The goals will be achieved by providing affordable and flexible loan terms to businesses that will serve as an incentive to lending institutions to participate in a business deal that would not occur were it not for the RLF loan. In all instances, the CMV loan will be in conjunction with a larger share of private financing or other business investment sources.
Why is the fund needed?
Small businesses create the most jobs, but suffer from a shortage of long term financing. Eighty percent of the new jobs in the Nation and the great majority of jobs in western Wisconsin are created by businesses employing less than 100 people.
Ironically those businesses that create the most jobs are the least able to obtain reasonable financing for job creating business expansions.
Because of the shortage of long-term financing, small businesses are frequently unable to undertake expansions to the extent desired.
How is the fund managed?
The CMV Growth Development Fund is an organization made up of officials representing local governments, utility companies, financial institutions, and the MRRPC. The Mississippi River Regional Planning Commission is the Grantee and is responsible for administering and providing compliance performance services for the Fund’s Board of Directors and the U.S. Department of Commerce – Economic Development Administration.
Are There Any Federal Requirements?
Loan recipients are required to adhere to several federal regulations such as National Environmental Policy Act, Civil Rights Act, Davis Bacon Act, Flood Disaster Protection Act, and National Historic Preservation Act. A statement of non-relocation is also required. The MRRPC staff serving as the RLF administrator will inform the borrower of the above and any other Federal regulations they are required to adhere to secure a loan.
Is There an Application Fee?
A $100.00 processing fee shall be paid with the submission of each RLF application. An additional fee of $200.00 shall be paid at the time of closing to cover additional administrative expenses and future reporting and monitoring costs associated with the loan. For micro loans there is a $30.00 application fee with an additional 5% of the total loan (not to exceed $350.00) if the loan goes to closing. Each of these two fees shall be made payable to the Mississippi River Regional Planning Commission.
Who to contact for additional information?
Mississippi River Regional Planning Commission, 1707 Main Street, Suite 435, La Crosse, WI 56401, Telephone: (608) 785-9396, Fax: (608) 785-9394, Email: firstname.lastname@example.org.
What Standards and Loan Criteria will the Fund Use?
- Loan Sizes - in the $7,000-$85,000 range are preferred. The maximum loan to a single borrower is $100,000. Micro loans below $7,000 may also be considered.
- Job Creation - a minimum of one job created or retained for every $12,000 of RLF financing. The RLF Loan Board may adjust this up to one job for every $20,000 if they feel the economic benefits of a proposed loan merit such an adjustment.
- Loan Ratio - for purpose and protection of the RLF loan portfolio, $2 of private financing to every $1 of RLF financing is required.
- Participating Lender - Lending from this loan fund is always in conjunction with a sponsoring senior lender or investor. To apply for a CMV loan a business must secure private financing. A senior lender will also be required to appear at the CMV Loan Board meeting with the business to answer questions and help service the CMV loan.
- Equity - each project will require a minimum of 10% equity of total project cost.
- Uses of Funds - Real estate, working capital, and equipment and machinery all are eligible financing uses. Adequate collateral and security requirements will be sought on all RLF loans. The RLF may take a subordinated position behind a senior lender.
- Refinancing of Existing Debt - refinancing of existing debt may be considered if a business can satisfactorily demonstrate such refinancing is necessary to stay in operation and loss of jobs is a likely consequence if more favorable financing terms are not secured.
- Loan Terms - land and buildings 10-15 years, equipment and machinery expected life, and working capital up to seven years. Balloon payments and a transition to private financing after an agreed upon timetable are likely to be part of a loan.
- Interest Rates - Typically 4-6% based on need and economic conditions.
- Deferred Payments - deferment of initial loan payment may be allowed.
Interested businesses can complete and submit applications directly to Mississippi River Regional Planning Commission. Applications are processed on a first come first serve basis.
Prior to completing a loan application, contact the Mississippi River Regional Planning Commission (MRRPC) at (608) 785-9396 to see about the amount of loan funds available.
Please submit your application online securely using the button above. Our secure, online application encrypts your personal information including all of your supporting exhibits. Completing your application online will ensure your application is reviewed and handled efficiently.
If you prefer to print and mail your application, use the button below. You may also print and drop-off your application and support exhibits at MRRPC as well.