EDA Revolving Loan Fund | Invest Aurora

Utilizing a $2 million CARES Act Recovery grant received from the U.S. Economic Development Administration, Invest Aurora has capitalized and established the EDA Revolving Loan Fund program. The program will support the acquisition and rehabilitation of locally owned and managed enterprises by providing gap loan funding and can greatly benefit businesses that may find traditional financing difficult to obtain.

Program Eligibility

Borrower Eligibility

Eligible borrowers must:

Be a for-profit business in the City of Aurora
Be validly existing and in good standing where applicable
Be licensed to do business in the State of Illinois
Meet any citizenship or legal resident status requirements
Possess the licenses, certifications, zoning approvals and permits necessary to operate the proposed business at the time the loan is approved
Be current, and ensure that all loan guarantors are current, on business and personal income taxes, real and personal property taxes, payroll and business taxes, and court-ordered judgements
Provide disclosure of any outstanding litigation involving the business, the business owner(s) and any guarantor(s)

Project Eligibility

To qualify for an Invest Aurora EDA Loan, proposed projects must:

Reflect the City’s articulated goals and priorities for economic development in downtown business districts in the City of Aurora's 2017 Master Plan for Downtown Aurora
Be consistent with the goals of the City's current Comprehensive Plan and receive all necessary municipal approvals and, or authorizations
Demonstrate an immediate need for gap funding to reach completion
Not provide more than a reasonable rate of return on the investment to the owner(s) of the assisted activity
Demonstrate the economic ability to repay the loan
Be completed within 60 months of the loan commitment date, defined as the date the Loan Agreement is signed

Ineligible Projects

Activities not described as eligible projects are generally ineligible
Housing or residential projects of any kind
Acquisition of land for which a specific use has not been identified (i.e. land banking)
Political activities
Funds used in excess of RLF Income for administrative costs are not allowed Recipients are expected to keep administrative costs to a minimum

Revolving Loan Awards

The monetary value of each loan is determined by the overall project cost and availability of program loans, though the minimum loan award must be $25,000.

Awarded loan funds may be used for:

Acquisition, development, or improvement of real property
Demolition, removal, and site preparation related to acquisition or rehabilitation
Fixed assets
Machinery and equipment use
Working capital for start-up businesses

Fund Disbursement

Disbursement of funds will begin when borrowers have presented Invest Aurora with proof of all qualifying expenditures and lien waivers, if applicable. Disbursement for unpaid invoices will require special approval by Invest Aurora to ensure matching funds are correctly being applied as required by the terms of the Loan Agreement. Evidence of expenditures may include:

paid invoices for qualifying expenditures
canceled checks
and unpaid invoices reflecting imminent purchases to be made with loan funds

No disbursement will be made without written evidence of approved expenditures.

Apply Today for an EDA Loan

Completed applications must be submitted by mail or email to Christopher Faber at:
Christopher@investaurora.org
Invest Aurora
ATTN: Christopher Faber
43 West Galena Boulevard, Aurora, IL. 60506

Application Requirements

The application requirements will differ depending on the type of project proposed. The following items represent the minimum documentation that must be submitted before a loan application will be accepted:

Completed and signed loan application;
Business plan including market analysis and hiring plan;
Map of the business location;
Resumes of the applicant’s owners and key management staff;
Applicant’s financial statements, and if available, CPA prepared balance sheets and income statements for the most recent three years with 3-year projections with one (1) year month-to- month projections and detail supporting the assumptions used to support the projections. Also, interim statements not less than 45 days old and federal tax returns covering the most recent 3- year period for the applicant business, for owners of 20% or more of the applicant, and for all proposed guarantors;
Personal financial statements of owners of 20% or more of applicant