Business Financing Through Lake County Partners
Turn your challenges into opportunities and improve your bottom line with the help of Lake County Partners.
LCP Certified Development Company – We can help with your financing needs
Lake County Partners is one of the few economic development organizations in the country that the US Small Business Administration (SBA) has designated as a Certified Development Company (CDC) in order to help companies access the SBA 504 Loan Program to finance their expansion needs.
The 504 Loan Program is an attractive alternative to traditional financing because it offers long term, fixed rate, below market financing and lower equity requirements for businesses. This allows growing companies to conserve their operating capital and use it elsewhere in the business.
In most cases, the deal is structured with 50% of a project’s cost being provided by a bank; 40% of the deal being financed through the SBA 504 program; and 10% equity provided by the applicant (these numbers will be different for start-up companies or for projects that include special use buildings).
This is an ideal product for businesses that have a net worth less than $8 million and net profits of less than $3 million during each of the previous two years. Qualifying projects should involve the purchase, construction, and renovation of fixed assets such as land and building acquisition, construction, and renovation, and/or the purchase of heavy machinery or equipment. Projects that qualify must meet certain SBA guidelines including the creation or retention of jobs.
The program is attractive to financial institutions since they can participate in more and larger deals, provide a 90% financing option for clients looking to conserve equity for other business functions, and the bank always takes the 1st lien position.
Changes through The American Recovery and Reinvestment Act of 2009 Make SBA Loans A Great Deal For Businesses!
We also package SBA 7(a) Loans
Lake County Partners works with partner banks to package SBA 7(a) loans. These loans can be used for working capital and are attractive for small businesses. This is a guaranty program in which the borrower works through his/her lender to secure financing. In turn, the lender receives a “guaranty” on the loan proceeds from the SBA.
Industrial Revenue Bonds (IRBs) – the smart choice for expansion
Lake County Partners serves as the processing agent for the Private Activity Bond Clearinghouse for all communities in Lake County in association with the Illinois Finance Authority (IFA) and the Village of Buffalo Grove. Industrial Revenue Bonds are tax exempt bonds issued to finance the capital expenditures of manufacturers, 501 (c) (3) non-profit corporations, and affordable housing projects.
For small to medium-sized manufacturing companies looking to expand operations, IRBs offer an ideal way to make growth happen. This type of financing can be used for the acquisition of fixed assets such as land, buildings, or equipment and for renovation and new construction. A wide variety of businesses that alter or add value to raw materials qualify under these guidelines, including untraditional manufacturing operations, such as food processing or printing firms.
The benefit of using IRBs for financing fixed assets is that the interest rates for these bonds range from 65% to 80% of most conventional bank interest rates.
The IRS permits the use of IRBs for non-profit 501 (c) (3) organizations and multi-family affordable housing projects.
Our Strategic Partners – Relationship Management
If you or your company needs banking services, we are proud to recommend the following financial institutions that actively participate in Lake County Partners.
More Information
For more information regarding the SBA products, please go the US Small Business Administration’s website at www.SBA.gov.
Take advantage of the financing assistance Lake County Partners offers to keep your business moving forward.
For financing assistance, contact Lake County Partners’ Vice President of Commercial Lending, Frank Brisbois at (847) 247-0137, ext. 225 or fbrisbois@lakecountypartners.com.
If LCP’s financing programs don’t suit you, consider the Lake County Small Business Loan Program!
The Small Business Development Center at the College of Lake County is offering access to small business micro-loans in cooperation with Accion Chicago. These are loans from $200 to $25,000. See if you qualify here (Lake County Small Business Loan Program Guidelines), or call CLC’s Small Business Development Center at (847) 543-2033 for more information.
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