City of Quincy Economic Loan Development Program
Goals and Objectives: To preserve and promote the Quincy economy by providing financial incentives that will encourage private investments for new and expanding businesses that will result in the creation and/or retention of jobs.
Eligibility: Any new and/or expanding manufacturing business, distributing, warehousing, packaging and processing facilities, office industries (including corporate, professional and technical) that create or retain permanent jobs and demonstrate a significant payroll and other long-term economic benefits to the Quincy area.
Eligible Project Costs: Land and/or building acquisition, structural rehabilitation, expansion, machinery and equipment, furniture and fixtures and working capital. Loan funds cannot be utilized to refinance existing debt.
Types of Loans:
Participation Loan - A financial institution must participate with a matching term loan.
Direct Loan - This is a high-risk, venture capital component of the program, subject to loan committee approval.
Link Deposit Loan - The city makes discounted deposits with the participating bank, allowing the bank to lend directly to the borrower at below market rates.
Loan Guarantees - Makes financing available by guaranteeing repayment of principal for loans made with bank.
Interest Rates and Loan Terms: Loan terms and rates are determined by agreement between the Participating Lender and City on a case-by-case basis. Loans would be structured to provide the borrower a lower blended rate.
Loan Security/Collateral: Loans must be secured by collateral sufficient to assure repayment. Acceptable security could include: a mortgage on land, building and/or equipment; and in some projects, assignment of warehouse receipts and accounts receivable. A personal guarantee from each major principal in the company is a requirement. A life insurance policy matching the city’s loan and naming the city of Quincy as beneficiary is required from each major principal in the company.
Origination and Service Fee: An origination fee of 1.5% of the loan principal is due on the date of the loan closing. In addition, an annual service fee of .5% is assessed on the declining principal outstanding on the anniversary of the loan. These apply to all loans.
To Apply: Submit a completed application form along with a detailed business plan and other requested financial information.
For more information, contact:
Department of Planning and Development
City of Quincy-City Hall Annex
706 Maine Street
Quincy, IL 62301