Small Business Revolving Loan Program

The Economic Development Corporation’s (EDC’s) small business loan program can provide financing to local for-profit businesses. The EDC gives priority to manufacturing and industrial service companies. EDC funds are not a replacement for conventional loans, but are intended to assist in lending to adequately capitalize small businesses. The EDC can provide a direct loan for up to 20% of the total project cost, and the maximum loan amount is $100,000. Loans are secured by business and personal assets, as well as through the personal guarantees of owners. Businesses receiving EDC funding must be able to create one new job for each $25,000 borrowed. EDC funds can be used for most business purposes, including building improvements, equipment, inventory, and working capital.

Eligible businesses include:

  • Manufacturing, commercial, and service businesses
  • Existing businesses looking to expand
  • New businesses wanting to start up in Genesee County

Loan Requirements & Limitations

  • Loan amount—$100,000
  • Interest rate—negotiable Prime plus 2% to 3%
  • Term—up to 10 years
  • Amortization—up to 25 years
  • The business must provide one new full-time job (exclusive of the owners) for each $25,000 loaned
  • The business and assets securing the loan must remain in Genesee County for the term of the loan
  • All owners are required to personally guarantee the loan
  • Owner’s equity—minimum of 10%
  • Direct or indirect loans available

Application Requirements

The following information must be submitted to the Flint & Genesee EDC for review and analysis before a funding commitment can be made:

  • EDC application, related forms and a business plan—including detailed information about the business and its principals
  • The amount and type of financing requested, the source of other financing, the intended use of these funds, and documentation of the financing gap
  • Financial statements—including a balance sheet, an income statement and tax returns for three years prior, and cash flow projections showing revenues and expenses for the three years following the loan
  • Personal financial statements of all owners, stockholders, and investors
  • EDC funding is limited to manufacturing, commercial, and service businesses, but cannot be used for housing projects, real estate or speculative developments, investment purposes, or non-profits
  • EDC financing is not a substitute for bank financing and cannot be used to pay for work already completed or for payment of existing debt

Industrial Development Revenue Bonds (IDRB)

Manufacturing businesses considering a significant investment in land, or purchase of a new building or new equipment, can obtain financing through EDC-issued tax-exempt bonds. Bonds issued by the EDC are typically granted at a minimum of $1 million, but cannot exceed $20 million. Interest rates, which are negotiated between the businesses and the bond purchasers, range from 65% to 80% of the prime rate. The term of the loan cannot exceed the useful life of the assets financed by the loan. Bond repayments are the sole responsibility of the business and are secured by business assets. The bond approval process must be initiated before financial commitments are finalized. Bonds can be issued to finance land, building, machinery, and equipment. They can also be issued to fund bond issuance costs for facilities suitable and intended for a factory, mill, shop, processing plant, assembly plant, fabricating plant, warehouse, research and development facility, or an engineering, architectural, or design facility, or tourist and resort facility. The EDC also may issue bonds for certain water and air pollution control facilities, and for solid waste disposal facilities. Organizations submit IDRB applications to the Genesee County Economic Development Corporation.

Contact Us

Tracy Joseph
Business Finance Manager