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Finance Terms and Conditions

Terms and conditions
Loan terms and conditions shall be structureD on need and ability to repay. Minimum standards shall include the followinG:

Loan Amount:  Subject to the availability of program funds and the proposed project. In general, the following maximums apply:
  • Working Capital:  $15,000
  • Equipment:  $50,000 (with a combined loan-to-value of 70%)
  • Real Estate:  Combined loan-to-value of 90% - not to exceed $250,000 without a unanimous vote by the Economic Development Loan Committee. Loans over $250,000 may require additional equity. 
Equity:  Each project will require a minimum of 10% equity

Interest Rates: The interest rate shall never be lower than 4.25%
  • Working Capital:  Prime plus 1.5%
  • Equipment:  Prime plus 1%
  • Real Estate:  Prime plus 0.5%
Loan Terms:
  • Working Capital:  Maximum term of five (5) years
  • Equipment:  Maximum term of five (5) years and a maximum amortization of ten (10) years
  • Real Estate:  Maximum term of five (5) years and a maximum amortization of twenty (20) years
Period of Payment:  Amortization schedules shall be set up for monthly payments with all payments due the first of the month.

Prepayment:  No prepayment penalties

Collateral:  Vernon County will seek to have real estate as first collateral option. If reals estate is not an option, Vernon County will seek to have the best possible collateral position possible to ensure that Economic Development Loans are adequately secured.

Closing Costs:  A $250 closing cost will be applied to all loans at closing.

Timeline:  Projects shall be completed within 24 months from the date of the loan approval. Applicants shall provide the county a project implementation schedule not exceeding 24 months for project completion.