Another $1 Milloion in Business Loan Power

</element><element id="paragraph-1" type="body"><![CDATA[The Southern Illinois Coal Belt Champion Community has learned that the United States Department of Agriculture has provided an additional $1 million loan to Coal Belt's efforts to support businesses in Perry, Franklin, and Williamson Counties. The additional loan means that SICBCC will be able to provide more low-interest loans to businesses throughout the region. The USDA commitment brings the total assistance to SICBCC to nearly $2.5 million.

Coal Belt is a 501(c)(3) non-profit corporation that was founded in 2002 to provide economic and community development support to the three-county area. Since that time it has assisted 20 businesses with loan totals approaching nearly $1.1 million. The availability of the loans has been particularly critical during the economic downturn as loans from traditional sources tightened measurably. Coal Belt has been assisting regional businesses with loans since 2008. This is the second time USDA has provided a $1 million loan to the champion community.

Rex Duncan is President of the Board of Directors and had been involved with Coal Belt since its inception. Duncan said he's delighted with the announcement and looks forward to getting the money into the hands of business people who can use it effectively to grow their businesses and hire more workers. "I'm very proud of the good work the champion community has been doing in this regard," Duncan said. "We've assumed a very important role in meeting business finance needs in the region at a time when it is so very difficult to meet those needs otherwise. We are having an increasing impact on the business climate in our communities."

The loan program includes a fixed rate of 5% with a ceiling of $150,000 per loan. Duncan said Coal Belt has to be conservative in making the loans. "We have to make good, smart loans because we have to repay USDA," Duncan said. Despite the low interest rate, he said the program isn't for everyone and requires effective business plans and collateralization.

The latest round of funding was provided with the hope of expanding the program in Williamson County while still supporting businesses in Perry and Franklin. Duncan said much of the lending activity to date has centered on Perry and Franklin Counties. He is very grateful to the USDA Rural Development team that serves southern Illinois. "We've enjoyed a very constructive relationship with the Rural Development folks that work with Coal Belt," he said. "They really have been great partners in advancing the work we've tried to accomplish."

Prior USDA support for SICBCC lending has included a $94,500 grant that was used to create a revolving loan fund program, followed by $300,000 and $1,000,000 IRP's. Duncan said SICBCC hopes to be able to expand its financial programming in the near future to focus increasingly on microenterprises, or businesses with 10 employees or less. Coal Belt also manages a $100,000 grant program that encourages businesses in downtown Du Quoin to improve their building facades.

For more information about the SICBCC loan programs for Perry, Franklin, and Williamson Counties, please contact Duncan at 618.453.1268 or SICBCC treasurer Jeff Ashauer at 618.357.2940.