The City of Bowling Green has a loan fund that could help local business owners get their business off the ground or expand.
The city’s Revolving Loan Fund provides loans to eligible businesses resulting in more jobs for low- and moderate-income people. In most instances, at least one job must be created and offered to a person at a lower income level (at time of hire) for every $35,000 loaned. However, HUD (Housing and Urban Development) has authorized the city to issue a few micro loans, annually, within the Special Improvement District that are based on lower-income residency saturation within that area. Most RLF loans are made for a fixed term of three to five years with an interest rate that is two-thirds of the prime lending rate (as listed in the Wall Street Journal) on the closing date.
Businesses may utilize the funding for inventory and equipment purchase as well as working capital, but not for construction or property purchases.
The city’s Business Revolving Loan Fund (RLF) was established in 1987 as a means of offering “gap finance assistance” for those businesses desiring to create employment for persons at lower income levels within Bowling Green’s corporation limits. Thirty-four years later, it is still making an impact – recently surpassing the $5.5 million mark in terms of total loans made since the fund’s inception.
For more information or to receive a loan application, contact the Community Development Division at 419-354-6221 or communitydevelopment@bgohio.org.
