Revolving Loan Program

Two Rivers offers competitive financing to help fund new businesses or expansion projects. The city's revolving loan fund has helped more than 25 companies expand operations and create jobs in Two Rivers. The fund collects about $400,000 in loan repayments every year. These dollars can then be used to support other growing firms with loan amounts up to $500,000.

Revolving Loan Fund Requirements

The loan fund is designed to help businesses locate in Two Rivers or to expand or retain jobs in Two Rivers. More than 51% of the jobs created or retained must be low-skilled or low-to-moderate income. The city lends $5,000 to $20,000 for every job created, as long as the business invests at least twice the amount of the city loan.

The financing may be used for capital improvements or investments needed to expand or maintain employment and production levels in the city. Local lenders can help with your portion of the investment.

Two Rivers requires a first collateral position on the aggregate loan amount. The term or length of the loan will be based on the useful life of the collateral.

Loan Criteria

The city will:

• Make loans only to businesses directly affected by the proposed activities
• Approve varying loan amounts depending on the dollars available
• Reserve the right to review a company's financial progress

The company:

• Can't sell or move
• Must show adequate financial ability to repay the debt
• Must maintain hazard insurance on collateral
• Owner(s) must provide a personal guaranty
• Principals must carry life insurance coverage

Application Process

Applications are available from our office, located on the third floor of the City Hall. A loan application must include the following information:

• Details on how the project addresses the eight loan evaluation criteria
• Financial statements for the three most recent years
• A complete business plan as well as a brief summary (1-2 pages) that provides background about the project, market opportunity, and financial projections.

Applications are reviewed by the Business and Industrial Development Committee. You will be invited to attend the meeting at which your application is reviewed. The committee makes a decision within 60 days of the submission of the application. There is no limit on the number of applications that you can submit.

Loan Evaluation Criteria

Projects are evaluated on the following criteria and compared to other applications that are received. Your application must score 50 to 100 points to be eligible for a loan.

Employment Opportunities (0-15 points)
Does your project have potential to stimulate additional economic activity as a purchaser or supplier of goods and/or services in the community?

Business Activity (0-10 points)
Does your project have potential to stimulate additional economic activity as a purchaser or supplier of goods and/or services in the community?

Investment (0-15 points)
How much money will you invest in real estate that will generate additional tax dollars?

Public Improvements (0-15 points)
How much money will you invest in the business compared to the loan amount requested?

Risk Assessment (0-10 points)
What are the potential benefits to the city compared to the risks associated with providing a loan?

Economic Impacts (0-10 points)
Will your project have a positive impact on the city's economy?

Neighborhood Impacts (0-15 points)
Will your project have a positive impact on the neighborhood/area in which it will be located?

Planning Consistency (0-10 points)
Is your project consistent with the city's comprehensive and economic development plans?

Total Points Available = 100