City of Hoopeston Revolving Loan Program
The Revolving Loan Program is a program funded by the State of Illinois. The purpose of the program is to attract or retain jobs in Illinois.There are several requirements necessary to make a project qualify for the loans. Among the requirements are:
the business must be located within the city limits of Hoopeston.
for every $10,000 loaned, one job must be retained or added
the loan cannot be bank worthy. This program is not to compete with banks for financing.
There are limits as to amounts that can be loaned. The maximum amount loaned must be the lesser of:
1/3 of the total project cost
$10,000 for each job added or retained
The usual interest rate is 1% over prime. The term may be as long as ten years.
Applications may be picked up at City Hall, located at 301 West Main Street.
A typical loan is one where a bank may say that they can lend part of the needed money but their lending guidelines will not allow them to lend all that is needed. The borrower must find another source of money to complement what the bank will lend. The Revolving Loan Program is often the “other source.”
Since the Revolving Loan money takes a second position to the bank, the bank considers this source of funds nearly as valuable as a persons equity.
For questions, please call the Economic Development Office at (217) 283-7679.
Tax Increment Financing (TIF)
Tax Increment Financing, or TIF, is an economic development tool that state lawmakers gave local governments more than 20 years ago to help local governments increase economic development. TIF allows local governments to make the improvements they need, like new roads or new sewers, and provide incentives to attract businesses or help existing businesses expand, without expending funds out of the general fund or by raising taxes.
A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. Establishment of a TIF does not reduce property tax revenues available to the overlapping taxing bodies. Property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to the school districts, county, community college and all other taxing districts in the same manner as if the TIF did not exist. Only property taxes generated by the incremental increase in the value of these properties after that time are available for use by the TIF.
The property tax dollars generated by the incremental increase are then put in a separate fund within the municipality that established the TIF. Those funds can only be used within the TIF District for the following items:
Construction of Public Facilities
Acquisition of Site
Please click here for more information on how Tax Increment Financing works.
USDA Rural Development Business & Industry Guaranteed Loan Program
The City of Hoopeston also partners with the USDA Rural Development Office to offer other funding opportunities to businesses.
Eligible borrowers include individuals, corporations, cooperatives, partnerships and other legal entities, public and private, organized and operated on a profit or nonprofit basis.
Eligible Loan Purposes:
- Business and industrial acquisitions, construction, conversion, expansion, repair, modernization, or development costs.
- Purchase of equipment, machinery, or supplies
- Start-up costs and working capital
- Processing and marketing facilities
- Single use facilities
- And many more!
Contact the USDA Rural Development Office at (217) 403-6236 and check out the website: www.rurdev.usda.gov/rbs for other business opportunities!
To obtain information on State and Federal incentives please click here for the DCEO site.