The City’s revolving loan fund began in 1988 with a grant from the Federal Economic Develiopment Agency (EDA) in the amount of $500,000, with a match of $269,232 from the City’s capital funds.This $769,232.00 has been used to leverage $23,013,806 in private investment in the City and has resulted in the City loaning a total of $3,477,966.50 over the past 20 years to 40 businesses.
Borrowers report that 604 jobs have been created initially and 1,278 have been retained as a result of the City’s Business development fund. Of course if the business is successful more jobs were subsequently created. The fund currently recapitalizes at approximately $22,122.25per month. The interest rate on each loan is 4% below the prime rate on the date of approval, with a minimum rate of 4%.