by Susan E. Campbell
A new $500,000 funding source has been established to help fill a niche for small businesses in Warren and Essex counties.
“We are open for business,” saidEd Bartholomew, president of the EDC Warren County, which oversees the fund. “The fund launched in late November and we are already in discussions with some businesses.”
Half of the loan funds comer from New York Empire State Development Corp., with a match from four area banks: Glens Falls National Bank, Adirondack Trust Co., NBT Bank and Ballston Spa National Bank, he said.
EDC Warren County is working in conjunction with the Lake Champlain-Lake George Regional Planning Board to make loans available to a broader geographic base.
Bartholomew said the agencies expect to take applications from smaller businesses seeking $25,000 to $50,000 per loan for purposes such as working capital, buying equipment, acquisition of land or buildings, software upgrades and office technology.
“Sometimes, small businesses feel they have limited resources for short-term loans of this size,” Bartholomew said. “We want to be able to benefit a number of applicants looking to upgrade their businesses.”
Under the provisions of the fund, payments are recycled back into the pool. Loans will generally be paid back in five to seven years, with an interest rate based on the financial analysis of the loan.
“The percentage of interest would not necessarily be lower than the business could get elsewhere,” Bartholomew said. “This loan is not designed to compete with banks or provide a low rate, but it will be competitive.”
To qualify, applicants must have good credit history and a business plan, and provide financial statements, tax returns and other items that any bank underwriting a loan would require. Applications are to be submitted to the EDC.
“We will first sit and evaluate their needs,” Bartholomew said. “Perhaps there is a grant or another option available to them or a tax credit the company is eligible for.”
Paperwork is sent to the Empire State Development Corp. It will return a recommendation to EDC Warren County or Lake Champlain-Lake George Regional Planning Board for approval.
Visit www.edcwc.org or www.lclgrpb.org for more information.