By Barbara Pinckney
The Economic Development Corp. of
Warren County is putting the finishing
touches on a $500,000 revolving loan fund
for area businesses.
Ed Bartholomew, president of the EDC,
said the organization is partnering with
the Washington County Local Development
Corp. and local banks on the program,
which would be administered by the EDC.
Half of the money would come from a
state grant the two economic development
organizations won in 2011, he said. The
other $250,000 would come from the banks.
Bartholomew said the EDC is in discussions
with several financial institutions
that operate in the two counties, and it
is not yet known which ones will be participating.
The fund would make loans ranging from
about $15,000 to about $100,000 to businesses
in Warren and Washington counties.
Most recipients would be existing
companies in need of working capital or
looking to expand or purchase equipment.
Bartholomew said start-up businesses will
be considered for loans if there are experienced
people involved.
All borrowers will need to prove they are
credit worthy. With a revolving loan fund,
all money repaid is returned to the pot and
lent out to other borrowers.
“That is the beauty of the program–that
the money stays locally and does not go
back to the state,” Bartholomew said.
Bartholomew said there is always a
need for capital for small businesses, but
he sees demand growing as the economy
improves.
“I think 2014 has been a stronger year
in terms of existing businesses seriously
thinking about undertaking some expansion
or purchasing some equipment,” he
said. “Some of that is moving forward,
while some [businesses are] waiting to
see how the year concludes before they
sign on the dotted line.
“But I think 2014 will end up being a better
year than 2013 and I am very optimistic
that next year will be even greater in terms
of increases in expansions or increases
in business equipment purchases by area
businesses.”
The new loan fund would join several
already offered through the EDC, including
the Greater Glens Falls LDC Revolving
Loan Fund, the Adirondack Economic Development
Corp. Micro-Loan Program and
the Lake Champlain Lake George Regional
Planning Board Revolving Loan Fund.
“This is another good opportunity to
provide loans in Warren and Washington
counties,” Bartholomew said.
He said the goal is to have the new fund
begin operating on Jan. 1.
Jan. 1 also is the day the EDC’s marriage
of convenience to the Hudson River Local
Development Corp. should become official.
Bartholomew said Hudson River LDC
was formed about 10 years ago for economic
development purposes and has been
administered by the EDC. It has a board of
directors, but no staff.
Due to some subsequent changes in
state law, there is no longer a need for separate organizations.
“They can all merge under the one
umbrella of EDC of Warren County,” Bartholomew
said. “It is really a merger of
convenience and cost savings.”
He said that by eliminating duplicate
filing, audits, record keeping and so on,
the merger could trim the combined
organization’s expenses by as much as
$35,000 a year.
“That is a decent savings,” Bartholomew
said.