Business Loan Fund Receives SBA Intermediary Funds
Funding availability changes from time to time based on demand by businesses and our funding sources natural cycles. In the past year, funding was looking scarce as demand was extremely high.
The Loan Fund has been awarded SBA Intermediary funding that should fill the niche of Micro Loans for the next two years. Typically, businesses use these loans for purchasing equipment, inventory, or fund working capital needs.
The Loan Fund has access to Community Development Block Grant (CDBG) funding from the Office of Economic Development and International Trade (OEDIT). The Funds existing contract will be expiring this fall, however, actions are underway to finalize a new four-year contract for this valuable funding source. Region 10 has had eight contracts with OEDIT and has deployed just less than $5 million into the region. This funding source allows the fund to access capital for businesses that are start-up or expansions that are bringing low to moderate jobs to the region. Since the inception of the CDBG program, Region 10 has created or retained 446 jobs of which 335 were in the low to moderate income levels.
A relatively new funding source has been made available from the Economic Development Commission (EDC). A limited number of dollars has been earmarked for a Character Lending Program. This program can lend money to businesses that typically do not meet the collateral or cash flow requirements of the other funding sources. Although this funding source is very limited, Region 10 has been able to carefully deploy capital to make a difference in this underserved market segment of borrowers.
Lastly, the Loan Funds Revolving Loan Fund has a larger number of dollars to lend as the portfolio has grown the number of paid off loans is increasing and are being revolved back into the business community.
If you have a potential funding need contact the Region 10 Business Loan Fund Director Dan Scinto at 970-765-3126.