The Village of Middlefield manages low interest revolving loan funds to assist business owners starting or expanding their companies in the Village of Middlefield. Typical terms for these loans include:
- Loan minimum of $10,000. Cannot be more than 40% of the fixed asset project cost. Each dollar must leverage at least one dollar of other public investment in the project fixed asset costs.
- Applicant must invest at least 5% in cash equity toward the project fixed asset costs.
- Interest rate and terms are set individually for each loan. In most cases a maximum term of twenty (20) years is available for the purchase or land and buildings and a maximum of seven (7) years for machinery and equipment.
- Interest rates will be fixed at 50-75% of the current prime rate at loan closing, depending on economic benefit and risk assessment. Current Prime Rate can be found HERE
- Loans made for working capital will have a higher interest rate.
- Business must commit to one full time equivalent job created or retained per $10,000-$25,000 that will be loaned.
- Loan may be prepaid without penalty.
- If needed deferred repayment of the principal and interest depending on the needs of the applicant.
- We will seek the best possible collateral position.
- Acquisition of land, buildings and fixed equipment.
- The construction, expansion, or conversion of facilities.
- Machinery, equipment, or other fixed asset finance for economic development purposes.
- Transferring of ownership through acquisition of fixed assets unless the transfer results in an expansion project. Refinancing of existing debts, non-economic development projects, and training costs.
- The application can be found above
- An application will need to be filled out with supporting documentation attached. Typically, we are looking for a business plan with financial statements, financial projections and tax returns.
- A loan committee meeting will be scheduled where the committee will then make a recommendation on the loan.
- The recommendation will be taken to the Economic Development Committee and Village Council for final approval. (Because of timing issues with the meetings, keep in mind that the entire process could take 4-8 weeks.)
- Closing is scheduled and funds are disbursed.
The Village of Middlefield is an equal opportunity provider, employer, and lender.