Revolving Loan Fund

Low Interest Loans (Revolving Loan Fund)

Overview:
The City of Granite Falls Economic Development Authority offers low-interest, gap financing loans to businesses interested in relocating, starting-up, or expanding within City boundaries.

Eligibility Requirements:
In order to be eligible for an RLF loan with the Granite Falls EDA, an individual, business, or entity must plan to start-up, relocate, or expand within the Granite Falls’ city boundaries. Furthermore, they must create or retain permanent, private sectors jobs that provide above average compensation. For a more detailed account of the eligibility requirement, please visit this link.

Approval Process:
Any individual, business, or entity that is interested in obtaining gap financing through the EDA must complete the following steps:

1. Obtain financing from a private entity such as a bank.
2. Verify eligibility under the RLF guidelines.
3. Meet with the EDA Director to discuss the current availability of RLF funds
4. Complete and return an RLF Application to the EDA Office
5. Attain approval from the EDA Board (second Monday of each month)
6. Attain approval from the Granite Falls City Council (first and third Monday of each month)
7. Loan closing with the City Attorney

Business Subsidy Requirement:
Any loan or public funding package that exceeds $150,000.00 is considered to be a business subsidy. Projects meeting this threshold must enter into a subsidy agreement with the City that outlines tangible job creation goals (job rent ion also qualifies, but is hard to prove). On top of that, a commitment to stay in Granite Falls for at least five year is required.

Business subsidies are also required to go through a public hearing with a notice in the local newspaper describing the amount requested as well as the project. If approved, annual reporting to DEED on job creation/retention is required.

For more information on business subsidy criteria, policy, and procedures for the City of Granite Falls, please follow this link.