The Bi-State Regional Commission manages three different loan programs for the Region. Currently there are funds available in the Bi-State Revolving Loan Fund (RLF) and the Mercer-Muscatine County RLF. There is over $1.1 million in the Bi-State RLF (available to borrowers in Rock Island and Scott Counties) and $440 million in the Mercer-Muscatine County RLF (available to borrowers in Mercer and Muscatine Counties). Guidelines have been relaxed for both of the RLF’s through April 2021 allowing for the potential of no interest initially for manufacturing, white collar, and service industries and no bank letter indicating a gap in funding.
Bi-State also has received $2.250 million available in a new RLF from the Cares Act that must be utilized or lost before July 2022 with the same relaxed guidelines and priorities. The maximum loan is $350,000.
The focus on all of the RLF’s is the retention and or creation of jobs. Better paying jobs with benefits allow for more loan funds per job borrowed as shown below:
Average Wage Rate: Created/Retained FTE:
110 % County Average Wage Rate $20,000
100 % County Average Wage Rate $15,000
90 % County Average Wage Rate $10,000
80 % County Average Wage Rate $ 7,500
The average county wages are determined by referencing average wages according to state economic development resources.
The loan term is based on the type of project and risk. Ten years is the maximum loan term and four years is the minimum. Loans for working capital will be at a four year term. Loans for other higher risk projects will also be considered such as restaurants and personal services such as barbers, salons and beauticians. The interest rate for these loans will be greater than 0% but no greater than 4%. For all loans, demonstration of borrower equity in the project is required and cash equity will result in a better interest rate offered. Collateral and personal guarantees are required for all loans.