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Leelanau County EDC Revolving Loan Fund

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Purpose for Fund:

The Leelanau County EDC seeks to increase the diversification of the existing economic base by providing employers with capital for business start-ups and expansions and assist with the development of new facilities.

Eligibility:

Available funds will be lent out primarily, but not exclusively, to manufacturing companies, commercial businesses and tourism related businesses. Capital will be used for debt financing through direct loans for fixed assets including land and building acquisition, new construction or renovation, machinery and equipment, leasehold or land improvements. Working capital loans may be made only in exceptional situations where there is adequate collateral and the term is short.

Criteria:

Each applicant must meet listed criteria. The company must

  • Be located within Leelanau County for the duration of the loan. If a company obtains a loan from the EDC and relocates the business outside Leelanau County before the note is paid in full the note will come due immediately.
  • Expend funds and add jobs within Leelanau County. Companies may have additional locations outside of Leelanau County but all Revolving Loan Fund monies must be used for improvements or job creation at the Leelanau County location.

Additional Criteria:

The Leelanau County EDC will give preference to companies with the following additional criteria:

  • Bank Involvement. The Leelanau County EDC seeks to fund the last 25% of a given project. While traditional bank financing is not a requirement, preference will be given to those applicants that are working with a bank in addition to Revolving Loan Financing.
  • Job Creation. The Leelanau County EDC seeks to create jobs within the County in addition to retaining existing jobs. Job creation is not a requirement, but preference will be given to applicants that indicate an increase in the number of employees at their Leelanau County locations.
  • Applicants that intend to construct new facilities in officially designated business or industrial parks or districts.
  • Applicants that locate in officially designated downtown revitalization or redevelopment districts.

Terms:

  • Financing will be provided for up to seven (7) years for fixed asset financing and up to three (3) years for working capital.
  • The interest rate will be determined by the Leelanau County EDC Board of Directors based on the recommendation from the Review Team, but will generally be close to prime.
  • The applicant agrees to pay all closing costs.
  • Payments will be make payable to the Leelanau County EDC and mailed to PO Box 969, Suttons Bay, MI 49682

Please click on the links below to download the application and attachments.
Instructions
Application
Sources and Uses of Funds
Summary Page

If you have any questions, please feel free to contact the Traverse Bay EDC.