TIF District Microloans
What is the Community Development Loan Program?
The Community Development Loan Program is a microenterprise loan program to promote economic development in the Downtown Tax Increment Financing (TIF) District. Provided in partnership with the Riverbank Federal Credit Union (RFCU), it is designed to stimulate business activity by making available low-interest loans to start, expand or improve businesses within the TIF District.
The primary goals of the program are to provide financing for microenterprises that without the loan would not be able to start or expand, to strengthen and diversify the Town’s economic base, to stimulate private investment in the Town’s economy, and to provide additional tax revenues.
Who is eligible to apply?
Any microenterprise located within, or planning to be located within, the Downtown TIF District whose project demonstrates a public benefit is eligible to apply for a loan.
A microenterprise is a venture that has less than five employees, is often a self-employment venture for the owner, generally does not have commercial bank financing available and has relatively small credit needs. A microenterprise may be the sole source of income for the entrepreneur or a part-time enterprise to supplement wages from a job, and has less than $500,000 in annual gross sales.
What loans are available?
Loan amounts are flexible up to a maximum of $20,000. The current interest rate on the loans is three percent.
What can loan funds be used for?
Uses for loans funds may include, but are not limited to, code compliance, site improvement, remodeling of existing building, purchase or repair of machinery or equipment, purchase of furniture or fixtures, consulting services, marketing, e-marketing or similar activities, one-time relocation expenses and working capital.
How do I apply?
To apply, interested parties should submit the following documents:
- Loan Application and Addendum
- CPA or Company Prepared Year End Financial Statements (2 years)
- Business Tax Returns (2 years)
- Articles of Incorporation (if applicable)
- Partnership Agreement (if applicable)
- Business Plan
- Income statement (current and previous 2 years)
Applications can be mailed to:
Riverbank Federal Credit Union (RFCU)
516 Spring St
Windsor Locks, CT 06096