A new deferred loan program was established in Glens Falls to help entrepreneurs looking to start or expand businesses in the downtown area.
It is part of the city’s Downtown Revitalization Initiative, part of a series of state-funded projects that are coming to fruition.
Entrepreneurs can now apply for a deferred loan through the Glens Falls Business Downtown Revitalization Initiative Venture Enterprise Program, or GF Business DRIVE.
Around $600,000 of the city’s $10 million DRI grant awarded by the state in 2016 to rehab portions of the downtown area near South Street is being used to establish the program, city officials said.
Funding for the program was provided by the state’s Division of Housing and Community Renewal and will be administered by the city and the Greater Glens Falls Local Development Corp.
The city is seeking to promote new and existing business development within the DRI Target Area, including the South and Elm Street area that will be undergoing a significant redevelopment effort also sponsored by the DRI, and other parts of the Downtown Business District targeted for retail and general commercial activities.
Loans will be based on the needs of each awarded business and will be forgiven after five years if the business continues to operate within Downtown Glens Falls and meets all other program terms during that five-year period, officials said.
The city is encouraging applications for business ideas that provide goods and services not currently offered in the downtown area and that add to the “unique mix of retail, arts and cultural, and professional offices that benefit residents and visitors,” a statement from the city said.
GF DRIVE Applications are available through an email request to Collins at acollins@cityofglensfalls.com.
Project proposals must be submitted to the city by 4 p.m. Friday, March 12, to be considered for the first round of funding.
Additional questions can be directed to the contacts listed in the GF DRIVE Application materials. Officials said the city will partner with business support agencies to help applicants put together business and expansion plans.
“As the South Street redevelopment that is at the core of the city’s DRI takes shape, we always envisioned a supporting program that would encourage business start-ups and expansion plans to fill space on South Street and other parts of the downtown,” said Mayor Dan Hall.
Only entrepreneurs looking to create a new business or expand one that was started within the last five years are eligible. Also, those businesses cannot have more than 30 full-time employees and at least one owner must be actively involved in the day-to-day operations of the business.
The program is open to for-profit businesses, except for taverns, adult entertainment shops, residential dwellings and livery services, officials said.
“There is already a vibrant small business community within the city, and this program will provide a significant spark to boost business creation and expansion, particularly after the negative impacts on local businesses from COVID for much of 2020,” said Amy Collins, the city director of tourism and business development.
While GF DRIVE is not designed to help businesses respond directly to COVID, the new program can provide a financial boost to entrepreneurs planning a new business but who were otherwise holding off on their plans because of the uncertain economy related to the pandemic.
While nonprofit organizations are not eligible for GF DRIVE, officials said the city has made a concerted effort through other DRI-sponsored programs to support projects being implemented by nonprofits and arts and cultural institutions.
Officials said potential uses of GF DRIVE funding are broad, including building renovations and interior fit-up expenses, non-capital expenses such as inventory and equipment, payroll for new jobs that are created, and marketing and web-based sales platforms.
There is a 20 percent cash match required by each business owner that is awarded GF DRIVE funding, based on the total project costs that will be approved by the city during the project review process.
“We want business owners to have skin in the game, but we hope these funds will help encourage entrepreneurs to bring more retail and related business activity to the Downtown,” said Hall.
In an associated economic development moves, Jeffrey Flagg, who has served as the city’s sustainability coordinator since 2018, was hired as the city’s economic development director.
Flagg will operate out of City Hall. He replaces the late Ed Bartholomew, who held the title and did the job while also servicing as head of EDC Warrren County until his death last year.
The EDC Warren County seat is now held by Jim Siplon.
Overseeing the Downtown Revitalization Initiative will be one of Flagg’s roles.
The mayor appointed a working group last summer to oversee the project and ensure things stayed on point until a new economic director could be appointed. The working group will continue to work on the various components of the DRI alongside Flagg.