The Town of Lyons Revolving Loan Fund (RLF) Advisory Committee has announced that approximately $85,000 is available at favorable terms for licensed Lyons businesses whose principal office is in the Town of Lyons or the Lyons planning area.
These federal funds were originally awarded to the Town of Lyons by the United States Department of Agriculture to use for economic development–specifically business and expansion loans–to help create additional employment in the Town of Lyons.
The program, which has been in place for more than five years, currently has roughly the same amount of money loaned out (about $85,000) as is available. Businesses borrow, pay the loans back, and then the funds are put back into circulation. In fact, about $60,000 of the currently available $85,000 are funds that have already been in circulation, meaning that local businesses have already borrowed about $60,000 and paid it back.
Because of the COVID-19 pandemic and the collapse of most business activity, the committee is making an effort to once again get the word out about the funds. The committee has also agreed to temporarily relax the terms of the loans.
Specifically, the RLF committee has reduced the interest rate from two percent to zero percent; extended the loan term from eight months to 12 months; deferred the first payment due date to July 15; and increased the loan limit to $10,000.
The committee of seven Lyons-area residents that reviews the applications says that applications will be fast-tracked, and are always handled in strict confidence.
In addition, existing RLF borrowers can take advantage of a 60-day moratorium on repayments, effective immediately.
Interested parties and potential applicants can review the rules and standards document and the application document. Committee chairman Mike Porter can also answer any questions about the process via email.
