Rome Industrial Development Corporation
Community Reinvestment Fund from RIDC
OVERVIEW
The Community Reinvestment Fund is designed to provide necessary and appropriate financial assistance to foster economic development within the City of Rome. Funds are made available by the City of Rome through the Federal Community Block Grant Program, which mandates that there must be new employment, with at least 50% of those employees being low and moderate-income individuals. These funds are also targeted for businesses that would otherwise not receive funding through traditional sources. Documentation from a financial institution must be provided which either turns down a similar loan request or determines that a gap exists between available financing and the needed capital for the business project.
SERVICE DELIVERY REGION
The Community Reinvestment Fund is available to any qualifying applicant within the City of Rome.
ELIGIBLE BUSINESSES / PROJECTS
Any startup or existing for-profit industrial, commercial, professional, or retail business authorized to do business in New York State and operating out of a fixed location within the City of Rome may apply for funding (if unsure of your eligibility, please contact RIDC). Fixed asset and working capital loans are available but the borrower must supply at least 10% equity into the project (minimum of $1,000 or equivalent).
Fixed asset loans may be used for acquisition or renovation of real property including interior, exterior and facade improvements, signage, or the acquisition of machinery or equipment. The initial loaned amount will not exceed $9,000 or the necessary and appropriate amount to make the project viable; term will be no longer than ten (10) years, depending upon the use of the loan.
Working capital loans may be used for inventory, machinery and equipment, furniture, fixtures, and other non-fixed assets. The initial loaned amount will not exceed $9,000 or the necessary and appropriate amount to make the project viable; refinancing of an existing CRF working capital loan may be considered. Upgrades to existing non-fixed assets are allowed as well as loans for advertising, promotions, training and technology; term will not exceed ten (10) years, depending upon the use of the loan.
INELIGIBLE PROJECTS
No refinancing of existing debt (non-RIDC) including tax arrears; lines of credit; residential real property; or the residential portion of mixed-use property. Businesses must occupy at least 75% of mixed-use properties.
RATES & FEES
The interest rate will be based upon the highest US prime interest rate as published in the Wall Street Journal on the first business day of the month preceding the date of loan closing. The rate will be fixed for up to five (5) years, upon which RIDC reserves the right to adjust the rate based upon any change in the US prime interest rate.
A NON-REFUNDABLE APPLICATION FEE OF $100 IS DUE AT TIME OF APPLICATION
The borrower is also responsible for all costs associated with the loan such as, but not limited to, closing costs, filing fees, taxes, legal expenses, insurance, and collection costs.
COLLATERAL REQUIREMENTS
RIDC may require collateral for any loan; acceptable collateral may be any business or personal fixed asset, fixtures, equipment, accounts receivable, inventory or other non-fixed asset as deemed appropriate. Personal guarantees of all owners of the business will be required; co-signors may be required.
RIDC is committed to the success of our borrowers. We have a streamlined lending process/procedures as well as ongoing assistance offered through our counseling/mentoring program.
Applications are available from RIDC upon appointment and review of the business plan/project proposal. Call 315-337-6360 or e-mail for your appointment today!
Other RIDC Revolving Loan Funds »
RIDC Lending Process »
For more information, contact:
Rome Industrial Development Corporation
153 Brooks Road
Rome, NY 13441
315-338-0393
Fax 315-338-5694
mkaucher@mvedge.org
pzawko@mvedge.org