Numerous financial programs are available at the local, state, and federal levels to help your business lower the cost of expanding an existing business or locating a new facility in the Riverbend. In addition, there is an increasing amount of aid available from the private sector for economic development projects.
The Riverbend region offers distinct advantages in financing. While firms may take advantage of the variety of state programs, the Riverbend region has numerous financial assistance options available. More importantly, the Riverbend economic development team is experienced and has an outstanding success rate in putting together a package to suit the individual needs of a firm.
The following is an overview of major financial assistance/incentive programs:
Madison County Community Development Block Grant (CDBG) Economic Development Loan Program
This program provides below-market "gap" financing to expanding or new firms whose projects create permanent jobs for qualified low/moderate income individuals within Madison County. Loans are typically for 10-25 percent of the business' total project costs, up to $100,000. A majority of the jobs created as a result of the business project must be filled by low/moderate income individuals. Loan funds may be used for the purchase of land, buildings, equipment and the construction/renovation of facilities. The loan funds are normally lent at a rate of 3 percent interest for a term of five years.
Contact is Madison County Community Development at 618-692-8940.
Enterprise Zone Financing Program
The Illinois Enterprise Zone Program was signed into law December 7, 1982. The purpose of the Act is to stimulate economic growth and neighborhood revitalization at the local level. This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services. Key features of the Program are:
- Financial institutions must enter into a Master Participation Agreement.
- An eligible loan will be for no less than $10,000, nor more than $750,000.
- Illinois Department of Commerce and Economic Opportunity's (DCEO) subordinated participation will not exceed 25% of the total project.
- Ineligible uses of funds are debt refinancing and contingency funding.
- Eligible businesses are for profit, with less than 500 employees (or not dominant in its field). There are few industry restrictions.
- DCEO's rate, fixed or variable, will be 200 basis points below the Wall Street Journal Prime, but not less than three percent. The participating financial institution can retain 50 basis points to cover the costs of servicing the loan or it may elect to pass along the 50 basis points to the borrower.
- DCEO's subordination fee shall be waived.
- DCEO's term shall match that of the participating bank, unless funds are to be amortized longer than 10 years. An exception may be made for a balloon payment provision.
For further information, contact local Enterprise Zone Administrator at Madison County Community Development at 618-692-8940.
Tax Increment Financing
Tax Increment Financing (TIF) is a method for financing economic development and redevelopment in Illinois municipalities. Tax increments can be used on an annual basis to finance project costs such as land acquisition, site clearance, building rehabilitation, and the construction of public infrastructure. Bonds backed by the incremental revenues may also be used to accomplish these activities.
In the Riverbend region, these communities have TIF districts:
|City of Alton
||Greg Caffey, 618-463-3533
|Village of Bethalto
||Jeff Allsman, 618-377-8051
|Village of East Alton
||Joe Silkwood, 618-259-7714
|Village of Godfrey
||Mike McCormick, 618-466-3324
|City of Grafton
||Tom Thompson, 618-786-3344
|Village of Hartford
||Deanna Barnes, 618-251-2681 x15
|Village of South Roxana
||Bob Coles, 618-254-7460
|City of Wood River
||Jim Schneider, 618-251-3100
312-814-1700 or 217-782-6540
Illinois Department of Commerce and Economic Opportunity
Grants & Loan Programs
Small Business Administration
USDA Rural Development
Illinois Finance Authority
Illinois Finance Authority acts as the state's investment banker, with an affordable product line of revenue bonds, business loans, local government bonds, not for profit bonds and venture capital.
Overseas Private Investment Corporation (OPIC)
OPIC's core mission is to support economic development by promoting U.S. private investment in developing countries and transition economies. In support of that mission, OPIC evaluates all projects it may support for their contribution to development in 25 areas, and measures the organization's performance on the basis of the contribution of projects OPIC supports to development.
Export-Import bank of the United States
The Export-Import Bank supports the financing of U.S. goods and services, turning export opportunities into real transactions, maintaining and creating more U.S. jobs. We assume credit and country risks the private sector is unable or unwilling to accept.