Since 1983, DCEO has awarded approximately $140 million in Community Development Assistance Program(CDAP) Economic Development grants to more than 180 local units of government throughout the state to help them provide financial assistance to businesses locating or expanding within their boundaries. As financial assistance projects are repaid, the communities place the moneys in locally-administered Revolving Funds (RFs) that can be used to fund future economic development opportunities within each community. An estimated $100 million of those funds are already back in circulation, helping more than 3,300 businesses obtain the capital they need to expand operations in communities.

While most RFs do not make large financial assistance packages, the contributions are an integral part of a business' overall financing package, leveraging larger amounts of private sector dollars. In particular, CDAP RF dollars can be an important source of "gap financing" for small, rural businesses.

How to Establish a Fund
In order to establish a Revolving Fund (RF), the community must first be eligible for funding through CDAP Economic Development component. CDAP is a federally-funded grant program that assists Illinois communities by providing grants to local governments to assist them in financing economic development projects as well as other types of public infrastructure. The program is targeted to assist low-to-moderate income people by creating or retaining job opportunities and improving the quality of their living environment.

Units of general local government such as cities, villages, townships and counties may apply for funding. Municipalities must have populations of 50,000 or less and must not be located in an urban county or the 38 cities that receive federal "entitlement" funds. The Counties of Cook, DuPage, Kane, Lake, Madison, McHenry, St. Clair and Will are entitlement counties and not eligible for CDAP funds.

Eligible Uses of RFs
CDAP RFs can be used as financial assistance to companies to encourage investment and job creation/retention. Local governments, utilizing CDAP-RF financial assistance proceeds, may lend to for-profit and not-for-profit businesses. Another eligible use of these recaptured funds is that local governments may construct public infrastructure improvements that directly support private capital investment and job creation from identifiable, non-speculative projects.

Rules of Thumb for CDAP RF Financial Assistance
CDAP RF may provide no more than 50% of the overall project, exclusive of any refinancing of existing debt.

The amount lent by an RF may not exceed the current DCEO limit of $15,000 loaned for every full-time-equivalent (FTE) job created / retained by the project.

No speculative project financing (jobs must be created or retained in a timely manner as a result of RF investment in a specific, identifiable project).

At least 51% of the jobs created/retained as a result of the project must meet the U.S. Dept. of Housing and Urban Development (HUD) "Section 8" family income guidelines. Projects funded by RF funds must be monitored on the local level to insure borrowers are meeting the 51% low-to-moderate income goals for each financial assistance project.

When a community with an existing RF applies to DCEO for a new CDAP, their grant request will be reduced by the amount of the balance of the fund. It is therefore advantageous to the community to substantially draw down their fund (make several financial assistance projects) prior to submitting their new application, or plan to contribute the local balance to the project.

RF communities are responsible for reporting fund activity to DCEO semiannually on July 31 for the period of January 1 through June 30 and January 31 for the period of July 1 through December 31. Report forms must include the amount of non-RF dollars included in the projects and number of jobs created or retained as a result of the loan.

For more information on this program, please call 217-558-2842, TDD 800-785-6055.

NOTE:  The Revolving Loan Fund (RLF) has undergone a name change.  Any reference to the RLF will now be Revolving Fund (RF).  The RLF Handbook will still be referred to as the RLF Handbook until the Handbook has been updated.  The Illinois Department of Commerce and Economic Opportunity (DCEO) will be referred to as the department.

RLF Handbook

Chapter 5 - Table of Contents
Chapter 5-1
Chapter 5-2
Chapter 5-3
Chapter 5-4
Chapter 5-5

RF Report Forms

Excel Semiannual Revolving Fund Report
Instructions for Completing Excel Semiannual Revolving Fund Reports
Performance Measurement Report Form
Employee Income Certification
HUD Income Limit Retrieval
Sample Revolving Fund Recapture Strategy
UA Voluntary Sale Notice
 

Revolving Fund Communities - map

RF Communitities
Adams County
Alexander County
Algonquin, Village of
Anna, City of
Arcola, City of
Assumption, City of
Athens, City of
Aurora Township
Aviston, Village of
Barry, City of
Batavia, City of
Beardstown, City of
Belvidere Township
Belvidere, City of
Benton, City of
Bradley, Village of
Breese, City of
Buda, Village of
Bushnell, City of
Cairo, City of
Calhoun County
Canton, City of
Carbondale, City of
Carlyle, City of
Carmi, City of
Cary, City of
Cass County
Central City, Village of
Centralia, City of
Champaign County
Charleston, City of
Chillicothe, City of
Christian County
Clinton County
Clinton, City of
Columbia, City of
Cortland, Town of
Crawford County
Danville Township
Danville, City of
DuQuoin, City of
Dwight, Village of
East Dubuque, City of
East Moline, City of
East Peoria, City of
Effingham, City of
El Paso, City of
Eldorado, City of
Eureka, City of
Fairbury, City of
Fairfield, City of
Farina, Village of
Farmersville, Village of
Fayette County
Flagg Township
Flora, City of
Freeport, City of
Fulton County
Fulton, City of
Galena, City of
Galesburg, City of
Gallatin County
Gardner, Village of
Geneseo, City of
Genoa, City of
Gibson City, City of
Gillespie, City of
Grayville, City of
Greenup, Village of
Greenville, City of
Hamilton County
Hampshire, Village of
Hardin County
Hardin, Village of
Harrisburg, City of
Havana, City of
Herrin, City of
Hillsboro, City of
Hoffman, Village of
Hoopeston, City of
Iroquois County
Jacksonville, City of
Jersey County
Kankakee County
Keithsburg, City of
Kendall County
Kewanee, City of
Kirkland, Village of
Lacon, City of
LaSalle, City of
Lawrence County
Lincoln, City of
Litchfield, City of
Louisville, Village of
Loves Park, City of
Machesney Park, Village of
Macomb, City of
Macoupin County
Marengo, City of
Marion, City of
Mark, Village of
Marseilles, City of
Marshall, City of
Martinsville, City of
Mattoon, City of
McLean County
Mendota, City of
Metamora, Village of
Metropolis, City of
Milan, Village of
Minonk, City of
Monmouth, City of
Montgomery, Village of
Morris, City of
Morrison, City of
Mound City, City of
Mount Carmel, City of
Mount Carroll, City of
Mount Vernon, City of
Moweaqua, Village of
Nashville, City of
Neoga, City of
Newton, City of
North Aurora, Village of
Okawville, Village of
Olney, City of
Onarga, Village of
Oswego, Village of
Ottawa, City of
Paris, City of
Paxton, City of
Pembroke Township
Peoria County
Perry County
Peru, City of
Petersburg, City of
Pike County
Pinckneyville, City of
Pittsfield, City of
Pontiac, City of
Princeton, City of
Princeville, Village of
Pulaski County
Quincy, City of
Red Bud, City of
Richmond, Village of
Riverton, Village of
Robinson, City of
Rochelle, City of
Roscoe, Village of
Saint Elmo, City of
Salem, City of
Saline County
Sangamon County
Shelby County
Shelbyville, City of
South Beloit, City of
Southeastern IL Regional Planning & Development Commission
Sparta, City of
Spring Valley, City of
Sterling, City of
Streator, City of
Sullivan, City of
Tazewell County
Teutopolis, Village of
Toledo, Village of
Trenton, City of
Union County
University Park, Village of
Vandalia, City of
Vermont, Village of
Walnut, Village of
Wamac, City of
Watseka, City of
Wayne County
West Frankfort, City of
Williamson County
Winnebago County
Winslow, Village of
Woodford County
Xenia, Village of