Micro Loan Program

In September 2010, the Batavia City Council approved a Micro Loan Program to assist businesses seeking small loans with a below market interest rate. The program is a subsidiary of the city’s existing Revolving Loan Fund (RLF) program which is funded by the State of Illinois through the Department of Commerce and Economic Opportunity (DCEO).

About the Program
The Micro Loan Program allows Batavia businesses to apply for low interest loans from $10,000 up to $25,000. Interested businesses will need to complete an application that will be reviewed by a newly established Business Loan Review Committee with final review and approval from the City Council. Applications are due by the 15th of each month for consideration at the following month's Business Loan Review Committee meeting.

Program Criteria
The Micro Loan program falls under the umbrella of the city's state funded Revolving Loan Fund (RLF). The program follows the criteria outlined below:
  1. Creating a Micro Loan Fund as a subsidiary of the Revolving Loan Fund not to exceed $100,000 in total.
  2. The maximum amount of funds requested by a business cannot exceed $25,000.
  3. For each $10,000 requested a job must be created or retained (job creation or retention is a requirement of the RLF program as designed by the State of Illinois and must be adhered to as part of this program as well).
  4. Funds can be used for a variety of business needs including acquisition, construction, rehabilitation, machinery and equipment, or installation of commercial and industrial facilities and working capital expenses. Working capital expenses are limited to the following: inventory, employee salaries and general operational expenses.
All applications (PDF) will be reviewed by the Business Loan Review Committee and approved by the City Council.

Additional Information Needed
In addition to completing the Micro Loan Application, applicants must also provide:
  • Income statements/balance sheets for the business (past 3 years)
  • Tax returns for the business (past 3 years)
  • Term sheet (or other similar documents) from lending institutions you’ve approached for assistance with this project
Once these materials are submitted, applicants will be asked to submit to a credit check. Any questions regarding this program or the application process can be submitted to Christopher Aiston, Economic Development Consultant, via email.