Economic Development group looking for loan program candidates
</element><element id="paragraph-1" type="body"><![CDATA[ The Randolph County Department of Economic Development is exploring a loan program to help new and existing small business entrepreneurs. The program is a "gap" financing vehicle that requires partnership with a primary lending institution and requires some applicant equity.
"Access to capital is a major impediment for many who seek to start or expand a small business," said Chris Martin, coordinator of economic development for Randolph County. "Our program will help those with a viable business plan and a small amount of equity to realize their dream." Martin says the program also involves the Small Business Development Center (SBDC), which offers a number of services that can be of great benefit to small businesses. The SBDC can help author a business plan, and provides counseling services. The SBDC's sustainability training helps ensure the long-term viability of a new business.
How does the program work? The process begins when someone contacts the Department of Economic Development, a bank or the SBDC with a business idea. "Our group or the bank would route them to the SBDC initially," says Martin. "SBDC counselors would help the applicant understand the business plan and any other training they may need in kind of a filtering process." The applicant may then approach a county bank with their idea. The bank would look at a number of factors including the viability of the business, the experience and credit history of the applicant … and then make a determination for a loan. The bank may offer to finance 75 percent of the project. That leaves the applicant to cover the other 25 percent. "That is what we mean by "gap" financing," says Martin. "Let's assume that the applicant may have 10 percent in cash for the project. They still have to find the remaining 15 percent. If they choose to do so, they may apply to our program to cover the 15 percent." The business must be located within Randolph County.
The fourth partner in the loan program is the United States Department of Agriculture's Rural Development. "As part of our application to Rural Development, we are seeking candidates who may qualify for this program," adds Martin. "If there are Randolph County citizens who have always wanted to explore owning their own business here in Randolph County, they can contact our office at 618.826.5000, ext. 221, the SBDC at 618.536.2424 or their bank."
"A big part of our mission is to create jobs by helping to expand small businesses and create new ones," Martin added. "This program is one way we will do that."