NORWICH — The County's Economic Development Revolving Loan Fund is available for businesses in Chenango County that are looking to expand, retain existing employment, provide essential services, provide assistance for projects which represent growth of future employment, and more.
Eligible activities include the purchase of capital equipment, rehabilitation, acquisition, new construction, and working capital. Refinancing of existing debt is not permitted.
Chenango County Department of Planning Director Shane Butler said, “In my opinion, our revolving loan fund is beneficial to County businesses because typically our rates are lower and we can be a little more flexible.”
Butler said, “While we do all of our due diligence to make sure we make good decisions on who we loan money to, including taking collateral on all loans; we have entertained loans with those who may not have been approved at traditional institutions. To ensure additional buy-in, we also require a 50% match, either from the applicant or other sources secured by them.”
According to the website, loans can be approved up to $150,000 for qualified purposes with 75% of the prime interest rate, or 75% of the conventional loan rate set by area banks or at rates and terms deemed appropriate by Chenango County. All applications must be accompanied by a 1.0 % fee of the loan request.
Butler said the process can take about four months because of various approvals, including approval from the Loan Review Committee, Planning and Economic Development Committee, and Board of Supervisors, that must be complete before a loan can be issued.
He said since 2000, fifteen businesses have taken advantage of the Revolving Loan Fund. The Businesses have varied in size from only a few employees to hundreds and most are still in business today.
The Revolving Loan Fund was created in 1989 as part of an approved US Department of Housing and Urban Development Small Cities Community Development Grant he said.
He said the funds originated from a US Department of Housing and Urban Development Small Cities Community Development Block Grant and additionally the interest from previous loans accumulated added to the total amount of funding they have available.
Butler said originally, the Revolving Loan Fund was only for manufacturing firms who fell within the Standard Industrial Classification (SIC) Codes 20-39. With fewer of those entities in Chenango County, and to allow additional flexibility, the County changed it so anyone could apply for the loan as long as it was for economic development.
For more information or to review the application, visit the website at www.co.chenango.ny.us/planning/loans-grants/ or email email@example.com for additional information.