By Paul Post<\/p>\n
A $35,000 loan helped Argyle Cheese Farmer finish its plant when the firm started out 18 years ago.<\/p>\n
Whitehall-based Hogwash Cleaning Solution got $150,000 to buy new equipment for its existing business and another $200,000 more recently to purchase a new building.<\/p>\n
The popular eatery Grumbellies\u2019 move from Fort Ann to a former Glens Falls National Bank building in downtown Fort Edward has been made possible with $200,000 to acquire the building.<\/p>\n
These are among the dozens of small businesses that have flourished with loans from Washington County Local Development Corporation that\u2019s provided $20 million to firms, with an amazing 92 percent success rate, since its founding 40 years ago.<\/p>\n
\u201cSmall business is really the engine of Washington County\u2019s economy,\u201d LDC President and Executive Director Deanna Derway said. \u201cWe don\u2019t have the big industry that some of our neighboring counties do, so they created us to address that burgeoning small business sector.\u201d<\/p>\n
The original pool of money came from federal Community Block grants.<\/p>\n
\u201cThere\u2019s been no money added to it since then, just the interest on loans we get back from businesses,\u201d Derway said. \u201cThat\u2019s the money we use to help the next business down the road. It\u2019s a revolving loan fund.\u201d<\/p>\n
Loans range anywhere from $10,000 to $200,000, but can go higher with approval from a seven-member review committee and the county Board of Supervisors.<\/p>\n
Almost three dozen loans are currently under contract.<\/p>\n
\u201cWe are a $5 million dollar corporation and have four different revolving loan programs, each with its own set of guidelines,\u201d Derway said.<\/p>\n
<\/span><\/span><\/strong><\/span><\/b>They are for:<\/p>\n \u00b7 Real estate purchases with no renovations.<\/p>\n \u00b7 Real estate purchases with renovations.<\/p>\n \u00b7 Small business with five or fewer employees.<\/p>\n \u00b7 A USDA program that supports agricultural-based operations.<\/p>\n \u201cThe only thing we don\u2019t do, you can\u2019t use a loan to refinance existing debt,\u201d Derway said. \u201cIf somebody started a business on their credit card and comes to us to refinance that piece, we don\u2019t do that.\u201d<\/p>\n But everything else is on the table including land, buildings, construction, capital improvements, machinery and equipment, and training costs.<\/p>\n Argyle Cheese Farmer has obtained loans for several projects including its move a few years ago to the former Lewis Supermarket on Burgoyne Avenue in Fort Edward.<\/p>\n \u201cDeanna and the LDC have been very helpful, encouraging us to go forward,\u201d co-owner Marge Randles said. \u201cThey\u2019ve always backed up what they\u2019ve had to say with money and whatever else we\u2019ve needed. They\u2019ve always been there.\u201d<\/p>\n Hogwash Cleaning Solution co-owner Sacha Lewis said, \u201cThey\u2019re (LDC) amazing. It\u2019s a wonderful tool for small business. I don\u2019t think enough people know about it or even know it\u2019s available. It\u2019s an absolutely amazing resource. The loan process isn\u2019t that difficult. You\u2019ve just got to put a little effort into it.\u201d<\/p>\n Interest rates vary depending on details of the loan such as term, use and risk level. \u201cWe are currently approving at 6 percent to 7 percent, but have a floor of 5 percent and a ceiling of 9 percent,\u201d Derway said. \u201cWe have an excellent working relationship with local banks and organizations similar to us. In many cases, the LDC and local banks have jointly participated in projects where there\u2019s a gap between what the bank approved and what the business needs. We\u2019ll look at the project to see how we can partner by providing gap financing. I regularly partner with the fantastic small business lending team at Arrow Bank especially.\u201d<\/p>\n Interested parties are encouraged to contact the LDC to obtain a loan application. Documentation is asked for, the same as applying for traditional lending from a bank or other financial institution.<\/p>\n Washington County LDC co-sponsors Start-Up ADK, an eight-week course at SUNY Adirondack that helps entrepreneurs launch or expand a small business. Topics such as marketing, bookkeeping, financial projections, human resources and how to go about obtaining loans are covered.<\/p>\n Completed loan applications are scrutinized by the seven-member review committee comprised of local business people and designees appointed by county supervisors. Approvals may take anywhere from a month to a year.<\/p>\n The loan\u2019s term varies on its purpose. For equipment purchases, it might be five to seven years; for real estate 10 or 15 years.<\/p>\n \u201cWe make sure to collateralize very well because we are kind of an alternative financing as opposed to banks,\u201d Derway said. \u201cWe make sure the collateral is there; personal guarantees as well. Even with businesses that have closed, we only have one that we\u2019re still trying to work out what\u2019s going to happen with it. All the others are still continuing to make payments and chip away at their responsibility.\u201d<\/p>\n \u201cWe have had to sell collateral or property to make up funds,\u201d she said. \u201cBut we do have a 92 percent success rate from the $20 million we\u2019ve loaned, which is really high for organizations like us.\u201d<\/p>\n The types of business people seek loans for is quite varied, especially since the coronavirus pandemic. The list runs the gamut from Slick Fin Brewing (Fort Edward) and Dancing Ewe Farm (Granville) to Groundskeeping LLC (Eagle Bridge) and North Country Paws for Obedience (Hudson Falls).<\/p>\n \u201cIt\u2019s really all over the board,\u201d Derway said. \u201cWe\u2019re seeing a lot of restaurants, which are difficult to get approved from a bank because it\u2019s an inherently risky business. But we\u2019ll do it if the collateral is there to back it up. We\u2019re also starting to see applications from people who have migrated up here since COVID. Some folks are just looking for business guidance. They aren\u2019t even looking for funding, but need help with a DBA or creating an LLC. Learning about the area is a big piece to opening a business, too. You need to do due diligence.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" By Paul Post A $35,000 loan helped Argyle Cheese Farmer finish its plant when the firm started out 18 years ago. Whitehall-based Hogwash Cleaning Solution got $150,000 to buy new equipment for its existing business and another $200,000 more recently to purchase a new building. The popular eatery Grumbellies\u2019 move from Fort Ann to a […]<\/p>\n","protected":false},"author":89,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-38194","post","type-post","status-publish","format-standard","hentry","category-business-news"],"yoast_head":"\r\n