The RPC’s Economic Development Division is a central resource for a variety of innovative financing programs for businesses, organizations, and governments in East Central Illinois. View the program summary sheet.
- Community Development Assistance Program (CDAP): Loans for businesses and organizations located anywhere in Champaign County. Loans between $5,000 and $1,000,000; up to 50% of the total project cost. Eligible for working capital, machinery, equipment, inventory, real estate, infrastructure projects, and many other uses.
- Intermediary Relending Program (IRP): Loans for businesses, organizations, and governments in communities of less than 25,000 population in the East Central Illinois counties of Champaign, Douglas, Ford, Iroquois, Piatt, and Vermilion. Loans between $5,000 and $250,000; up to 49% percent of the total project cost. Eligible for working capital, machinery, equipment, real estate, rural government infrastructure projects, and many other uses.
- Champaign County Community Development Corporation (CDC): Financing of businesses located anywhere in Champaign County and surrounding communities. Each CDC loan should be matched by member bank financing. Loans or equity investments; up to 50% of the total project cost. Eligible for working capital, machinery, equipment, real estate, and other uses. Participating member banks include BankChampaign, Busey Bank, Central Illinois Bank, Chase Bank, First Midwest Bank, Midland States Bank, and PNC Bank.
These programs are intended for projects that cannot fully access conventional lending resources, in furthering the economic development of the region.
Background
These RPC programs offer borrowers flexible terms, affordable interest rates, long-term fixed-rate financing, lower down-payment requirements, and reduced private-lender risk. RPC staff analyzes and structures the most attractive financing proposal based upon program requirements, project needs, employment, community impact, and private sector participation. RPC is a well-established participant in the financing field, having closed more than 441 loans of over $28 million throughout Champaign County and surrounding communities.
Eligibility
Requirements vary by program and include financing opportunities for expanding businesses, start-up businesses, government agencies, and other organizations with revenue streams. Start-up businesses should be led by strong entrepreneurs, with reasonably secure collateral, significant bank participation, or a high level of owner equity investment. Expanding businesses should have a solid track record of past accomplishments. All projects require additional funding sources and sound financial projections. The credit criteria require that the applicant demonstrate adequate cash flow from operations for debt service.
Application Process
Applicants will need to submit the following items for financing consideration:
- Application
- Business plan (Governments may submit project scope instead)
- Three years historical business federal tax returns (existing entity)
- Three years historical personal federal tax returns (all entities except government)
- Current balance sheet (existing entity)
- Current profit and loss statement (existing entity)
- Three years projected profit and loss statement
- Three years projected cash flow statement
- Projected balance sheet
- Personal financial statement (all entities except government)
- Other relevant documentation such as corporate filings, lease agreements, sale agreements, purchase agreements, estimates, existing debt schedules, appraisals, etc.
- Each client will be charged a 1 percent origination fee
Each program has its own loan review and approval process. Decisions will be based upon the external need for the project including feasibility, community and economic impact, job creation/retention potential, risk, rate of return, collateral, and a variety of other factors considered in the financial analysis, financial ratios, and project concept.