Revolving Loan Fund

The City of Kokomo offers three Revolving Loan Fund Programs, aimed at revitalizing the Kokomo community by providing flexible, low-interest financing to new and expanding businesses.

Applicants may borrow to:

construct, expand or convert buildings
purchase land and buildings
purchase machinery, equipment, furniture, fixtures, materials and manufacturing inventory
provide working capital

If you are a business owner interested in the Revolving Loan Funds, please contact the Department of Development at development@cityofkokomo.org or 765-456-7375.

The EDA CARES Act Recovery Assistance Revolving Loan Fund Program provides low interest financing to small businesses, business start-ups, and growing businesses in the manufacturing, industrial, service and high-tech sectors. To effectively respond to the economic injury caused by the COVID-19 pandemic, this RLF fund will have an additional emphasis on quick and efficient disbursement to hard-hit local businesses (time is of the essence). In addition to businesses looking to locate or expand in Kokomo, this award has a particular emphasis on Job Retention and Working Capital allocations. Project goals should include the creation or retention of one full-time job for each $20,000 loaned. Loan amounts typically range from $50,000 to $300,000.

The Technology and Industry Revolving Loan Fund Program provides gap financing to primary-sector employers, including research and development facilities, engineering firms, logistics companies, manufacturing and industrial facilities, service-sector companies, high-tech entrepreneurial endeavors, life sciences initiatives and others. Past recipients have included a wide range of businesses, from distribution companies to software firms, and from steel fabrication plants to screen-printing shops.

The program is designed for businesses that would like to locate or expand in Kokomo, but have difficulty receiving the full amount needed through conventional lenders. Interest rates on RLF loans are set as low as four points below prime. Project goals should include the creation or retention of one full-time job for each $10,000 loaned. Loan amounts typically range from $50,000 to $300,000.

The Emerging Business Revolving Loan Fund Program is targeted toward new and emerging businesses, defined as businesses with 50 or fewer employees, and less than $1 million in expected annual gross revenue.

The program is designed for businesses that are unable to receive the full amount needed through conventional lenders. If a business is unable to obtain any financing through conventional lenders, the Emerging Business Revolving Loan Fund Program may provide all funding for the project under some circumstances. Project goals should include creation and expansion of new business, as well as job retention and creation. Loan amounts typically range from $2,000 to $15,000.

RLF Program Comparison

Industry and Technology Revolving Loan Fund	Emerging Business Revolving Loan Fund	CARES Act Recovery Assistant Revolving Loan Fund
Available to primary-sector businesses	Available to new and emerging businesses	Emphasis on responding to economic impact of Coronavirus
Requires bank turn-down and private match of 1/2 to 2/3 project cost	Requires bank turn-down; private match encouraged but not required	Bank participation and private match highly encouraged but not required
Loans range from $50,000 - $300,000	Loans range from $2,000 - $15,000	Loans range from $50,000 - $300,000
Flexible interest rates set as low as four points below prime	Flexible interest rates which generally mirror Industry and Technology RLF rates	Interest rates set on per project basis
Available county-wide	Available in Kokomo city limits	Available County Wide

All programs subject to available funding, and satisfaction of qualifying criteria. Most programs include an application process and final approval.

For more information regarding either of these programs, please contact the Department of Development at development@cityofkokomo.org or
765-456-7375.