Revolving Loan Fund Available for Small Business Development
Palo Alto County Economic Development Corporation (PACEDC) has established the Palo Alto County Revolving Loan Fund for small business development. The RLF provides a source of financing, which may not otherwise be available within the county for local expanding or start-up businesses.
PACEDC was successful in applying for the RLF through USDA Rural Development and was awarded $70,000. USDA requires a minimum of $100,000 in seed money when applying and thanks to the commitment from Palo Alto County Gaming Development Corporation, Palo Alto County Banks, and Palo Alto County Board of Supervisors, PACEDC was successful in accomplishing this. PACEDC has $210,000 available for small business development loans.
“A revolving loan fund is an essential tool for business expansion and recruitment,” said Executive Director, Maureen Elbert. Elbert explained that economic development is key to the survival of Palo Alto County. The purpose of establishing a revolving loan fund is to assist borrower requests for “gap” financing. This type of financing fills the void between the total cost of the project and the total amount of funds the borrower has available from other sources such as owner's cash, commercial bank loans, and government funding. With the development of a revolving loan fund, PACEDC is able to assist small businesses with gap financing. Incentives such as fixed rate, low interest, and/or long-term financing are important to a business wanting to locate or expand within our county. We appreciated the assistance we received from Chris Mercer, Community Development Manager of USDA Rural Development with their USDA Rural Business Enterprise Grant.
Elbert noted that the Palo Alto County Revolving Loan Fund Review Committee has already approved a loan to Picray Welding of Emmetsburg for his building expansion and is excited to work in the future with more business entrepreneurs on expansion projects or start-up business opportunities.
The application and guidelines are posted on the PACEDC website at ww.paloaltoiowa.com. Palo Alto County Banks also have information about the RLF at their financial institutions. “The Palo Alto County Revolving Loan Fund will certainly assist with economic opportunities and when the loan is repaid, it replenishes the fund to support other projects,” said Elbert. Elbert is looking forward to assisting anyone seeking more information about the RLF program and encourages them to contact her office at 515-295-7979.