|Revolving Loan Fund is mainstay of Paulding Co. Economic Development|
|Tuesday, April 02, 2013 7:37 PM|
PAULDING – In 1993, Paulding County Commissioners Tony Langham, Maurice Wannemacher and Elaine Harp created an economic development office for Paulding County. Monthly meetings were held with an advisory board, the commissioners, and its first director, Sara Keeran. In 1999, the commissioners asked the two Community Improvement Committees (CICs) in the county to form what is today known as Paulding County Economic Development (PCED), and they directed that the PCED board be responsible for the PCED office and its operations.
From the start, one of the primary programs that was used, and still is to this day, is the Paulding County Revolving Loan Fund (RLF).
The goal of the RLF Program is to provide financing to corporations, partnerships or sole proprietorships. This financing can be for building acquisition, new construction and/or expansion, equipment, or remodeling for businesses located in Paulding County.
The source of funds for this program is derived from Community Development Block Grants (CDBG) that are administered by Ohio Development Services (ODS). The loans made to Paulding County businesses are repaid to the Paulding County RLF so that the money will be available to re-loan to other businesses.
To be eligible for this program, the following criteria must be met: Projects must create or retain jobs; 51 percent of all jobs must be made available to persons from low to moderate income households; business must be located in Paulding County.
The loan amount can be up to $25,000 for each new job created or up to 40 percent of the project, whichever is less. The interest rate is at a low fixed rate, currently 3 percent, with the fixed term of up to 20 years. As an example, a typical loan would be 40 percent RLF, 50 percent local bank, and 10 percent owner equity.
The minimum requirements are: creation of new jobs; financial participation by at least one private lender; adequate collateral as loan security.
Necessary documentation includes: independent project cost estimates; historic and projected financial statements; commitments for new equity and private lender participation; and an environmental impact study.
All applications are made to the PCED office located at 101 E. Perry St. in Paulding. The staff there will be helpful in explaining details regarding the documentation required. Applications are reviewed by the Paulding County RLF Committee, and ODS approval must be made prior to a business starting its project. The entire process will take a minimum of 90 days to complete.
PCED administers the Paulding County Revolving Loan Fund, maintains records, and completes required reports to the state and the Paulding County commissioners.
The PCED office has tabulated data over the years on Revolving Loan Fund loans made in Paulding County. These tabulations show that the RLF program has assisted county businesses with 32 loans totaling $2,618,315, and 376 new jobs have been created. This has resulted in millions of dollars in Paulding County employer payroll to date.
It is the mission of Paulding County Economic Development “To assist business, industry and local government in developing job opportunities and prosperity in Paulding County.”
To learn more about this program as well as others, call 419-399-8282, or email firstname.lastname@example.org. Also check out their website at www.pced.net.
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