A REVOLVING LOAN FUND CONCEPT
OVER THE RAINBOW REVOLVING LOAN FUND CONCEPT
SCOPE AND GOALS
PURPOSE
The purpose of the OVER THE RAINBOW Revolving Loan Fund is to assist in the creation and/or retention of private sector jobs within its Vermilion County service area (Danville, Hoopeston, Georgetown, and Champaign) by providing loan funds (gap financing) in conjunction with funds from conventional lending institutions, from other non-traditional, gap financing sources; and, from the borrowers’ own equity financing. Loan funds will revolve perpetually, providing supplemental, short-term financing of business and industry proposals.
Objective of the OTRM RLF program include:
To reduce unemployment by creating or retaining as many job opportunities as possible;
To increase the area’s tax base by assisting with the expansion of existing industries and by encouraging new industrial and business development;
To redevelop vacant land or blighted building areas in order to make them productive again;
To aid in attracting other sources of capital to insure the best possible leverage of private sector dollars;
To stimulate private sector capital formation and aid in small business development;
To provide capital for manufacturing and service industry;
To leverage the maximum number of private investment dollars, thus achieving the lowest ratio possible of OTRM RLF dollars to private dollars;
To increase per capital Income through achievement of more favorable jobs to people ratio;
To aid minority-owned businesses and/or female business development by providing financial and technical assistance;
To fill financial gaps in existing local financial markets and provide capital which otherwise would not be available for economic development, and encourage greater private sector job creation and capital formation.