The City of Fayette, in partnership with Upper Explorerland Regional Planning Commission (UERPC), is excited to announce the availability of a revolving loan fund (RLF) to attract new or expanding businesses in Fayette.  Fayette was recently awarded a Rural Business Development Grant (RBDG) from Rural Development, an agency of the USDA, that will help fund the RLF loans for the first year.

The program is designed to provide attractive financing terms to businesses that are otherwise unable to borrow needed funds through traditional bank financing.  Often, the RLF can provide the financing on that part of a project that is most difficult to finance – machinery, equipment, inventory, land acquisition, site preparation, building construction or remodeling, furniture, and so forth.

“Shrubb’s Street Eatery recently opened, the Fayette County Food Shelf and Thrift Store is currently adding on to their building, and with the announcement of a Dollar General coming to downtown Fayette, the council hopes this revolving loan fund helps encourage more businesses to open in Fayette,” commented Kris McGrane, Fayette’s City Administrator/Clerk.

Loan amounts will range from $5,000 to $50,000 with interest rates of 1% over prime, but not to exceed 5%.  Projects must involve a minimum of 5% personal equity.  Typical loan terms are 5 to 7 years.  In addition, UERPC has loans available up to $150,000 at similar rates and terms.

Fayette, which is the home of Upper Iowa University, encourages businesses to work with their local bank and economic developer and to consider financing options through the City’s RLF to make sure that financing obstacles do not hinder the creation and expansion of great businesses in Fayette.

For more information or to obtain an application, visit the City of Fayette’s website, www.fayetteiowa.com, UERPC’s website, www.uerpc.org, or contact Fayette City Hall at 563-425-4316.