Regional Development Company to evaluate revolving loan applicants
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- Published: Wednesday, 15 July 2015 23:01
WINAMAC - The Pulaski County Community Development Commission (CDC) has contracted the Regional Development Company, to provide financial evaluation and loan-closing services for the Pulaski County Revolving Loan Fund.
According to Nathan P. Origer, CDC executive director, the action was taken in an effort to continue to provide financial assistance to start-ups and growing small businesses for projects that are strong, while strengthening the security of the program.
This new relationship will provide additional protections for the revolving loan fund while providing the Regional Development Company (RDC) with a new vehicle for advertising its services to small businesses looking to grow in Pulaski County.
The RDC, based in Valparaiso, is a non-profit organization and Certified Development Company that administers the U.S. Small Business Administration’s 504 Loan Program for small business growth.
Under the agreement, loan requests greater than $20,000 will be forwarded to RDC for evaluation of business and personal financial attributes, such as credit rating, cash flow history and projections, and credibility of the applicant. Once evaluated by RDC, a report will then be provided to a CDC revolving loan fund committee for economic-impact evaluation and approval, before being presented to the Pulaski County Commissioners for a final decision. Pursuant to the agreement, any loan amount under $20,000 will continue to be handled solely by a local revolving loan fund committee.
“Ultimately, the CDC and county commissioners will still have the final say as to whether an applicant is approved or denied,” Origer stated. “This arrangement allows us to obtain vital information that we were previously unable to access, in addition to providing the committee with valuable, professional insight into the applicant’s ability to repay the loan.”
“We are excited to partner with Pulaski County to administer the revolving loan fund,” said Erica Dombey, executive director of the Regional Development Company. “These loans are often the first step in assisting small business owners, which in turn creates jobs and economic development in the community.”
Administered by the CDC, the revolving loan fund has a balance of more than $100,000 and grows as current loan repayments and interest build the fund. The revolving loan fund exists to assist current and start-up businesses to grow when bank financing is either unavailable or insufficient. Funding is available at three levels: micro-financing, mini-financing, and small loans of a minimum principal of $10,000.
For more information on the Revolving Loan Fund, visit http://development.pulaskionline.org/incentives/. For more information on the Pulaski County Community Development Commission, visit http://development.pulaskionline.org/. For more information on the Regional Development Company, visit http://rdc504.org/.
