Revolving Loan Funds

About the Recovery Revolving Loan Fund

The second Revolving Loan Fund was formed as a result of the CARES Act and in response to the COVID pandemic. This fund is called the Revolving Loan Fund II. Despite the different natures of the programs, the underlying terms and conditions are virtually identical and applicants are routed by City staff to the program that best fits their financing needs.

The Recovery RLF offers commercial loans up to $1.5m as part of the Coronavirus Aid Relief and Economic Securities (CARES) Act that was approved by Congress on March 27th, 2020.

The Recovery RLF program seeks to revitalize the landscape of industry and opportunity in South Bend. The City always thrives by attracting innovation, entrepreneurship, and employment opportunities. The loan fund is specifically focused on accelerating the recovery for new and existing businesses in South Bend.

Mission

The Revolving Loan Funds seek to…

• Recover and retain existing businesses
• Encourage and attract new businesses
• Promote an economy which supports business
• Improve capital access for local businesses

Gap Financing

Due to the pandemic, a number of small businesses had to close their doors. Some entrepreneurs have started a new business. But start-ups and small businesses are often at a disadvantage when it comes to conventional lending. A business needs capital to develop its product, but the bank needs to see a product to approve the business capital. The Recovery RLF is designed to provide help where conventional lending may fall short.

The Revolving Loan Funds also satisfy conventional lenders by offering gap financing. Our loan funds make up the difference between a business loan request and a lender’s threshold.

Loan Options for General Business, Equipment, and Real Estate

The Revolving Loan Funds provide gap and primary financing to private borrowers including start-up businesses in the City of South Bend.

Our loans carry a low interest rate and flexible terms of repayment to support small businesses within the City South Bend. The funds are loaned up to 20 years for real estate, 10 years for equipment, and 3 years for working capital. Loans can range from $50,000 to $1.5 million.

You May Use Loan Funds For…

The Revolving Loan Funds provide funding for working capital, equipment purchases, and real estate acquisitions. Funds can be used for…

• General business needs
• IT equipment
• Industrial machinery
• Logistical equipment
• Research and development
• Real estate
• Building renovations and extensions
• Land
• Warehousing
• And more…

You May Not Use Loan Funds For…

RLF capital is ineligible for use in…

• Refinancing existing debt
• Subsidizing an existing loans interest payment
• Investing in interest-bearing accounts (the stock market)
• Acquiring an equity position in a private business
• The tobacco, alcohol, and gambling industries

Eligibility

The most important qualification for a loan through the Revolving Loan Fund programs is dedication and commitment to your business. We look for businesses with an experienced and passionate management team who have been investing in their community and the City of South Bend.

Who is Eligible?

• The applicant is located in the City of South Bend, IN.
• The business is a for-profit enterprise.

Identify Needs

The City of South Bend wants your business to succeed and thrive, and the Revolving Loans Fund Programs are here to help make that happen. It begins by identifying your business’s financial needs.

What is your project and for what will the loan be used? Make a conclusive list, documenting the need for funds, how the funds will be applied, and the projected change to workflow/budget.

How the Revolving Loan Fund Programs Work

Start with a prescreening application. Once you have this application completed, a team member will be in touch to guide you step-by-step through the rest of the process. If your business is eligible for loan funds, we walk you through the loan application process which includes due diligence and underwriting.