City of Quincy Economic Development Loan Program

Additional information and application forms can be obtained from:

Cathy Schluckebier
City of Quincy Department of Planning and Development
730 Maine Street, 3rd Floor
Quincy, Illinois 62301
217/228-4515
Fax: 217/221-2288
cschluckebier@ci.quincy.il.us

Goals and Objectives
To preserve and promote the Quincy economy by providing financial incentives that will encourage private investments for new and expanding businesses, resulting in the creation and/or retention of jobs.

Who's Eligible
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 used to refinance existing debt.

Types of Loans

Participation Loan
A financial institution must participate with a matching term loan

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 the principal for loans made with a bank.

Interest Rates and Loan Terms
Loan terms and rates are determined by agreement between the participating lender and the 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 revceivable. 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.

History
The City of Quincy Economic Development Loan program was created in 1984 when the city obtained $6 million from the federal government to fill a vacant 850,000 square foot manufacturing facility. Half of the funds were used to attract a buyer for the building, and half were used to establish a revolving loan fund. From 1984 through December of 1999, 55 businesses of all sizes have been assisted with 79 loans totaling nearly $25 million.

The Loan Committee
The City of Quincy Economic Development Loan program is governed by a seven-member board of community leaders appointed by the mayor. The committee meets as needed to review and approve loan applications.