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The Lake Champlain - Lake George Regional Planning Board operates a regionally based Revolving Loan Fund program that provides financing to support the growth of small businesses through the five-county area.
The Loan Fund provides low cost, short term financing to businesses that are unable to obtain conventional bank financing. Since its inception, over $10 million in loans have been made to 160 entrepreneurial enterprises. The largest percentage of loans assists in business expansions, with another large percentage for new business start-ups.
All types of business ventures are eligible to receive assistance but high priority is given to those firms in the industrial sector. There is a limitation of $150,000 per project and loan applicants are encouraged to contribute at least 30% toward total project costs. The average loan amount is $75,000. Equipment and working capital loans have a maximum term of 7 years, real estate loans 15 years. The interest rate is usually fixed at a rate below market, with a low closing fee of up to 2%. Applications are accepted on a continuous basis and processing takes roughly four weeks.
In cases where a company needs more than $150,000, the Board sometimes partners with local economic development agencies or private lenders to provide the balance of capital needed.
To ensure loan funds are used wisely, applicants are asked to demonstrate how their project meets the economic development needs of the region. Projects are then evaluated based on community need, lacal capacity, project impact and project readiness. Project timing is also important and projects are processed on a first come, first served basis.
Capitalized in 1985, funding for the program has been provided by the US Department of Commerce, US Department of Agriculture and local economic development agencies. But thanks to its revolving nature, money is continually being returned to the fund as businessses pay off their loans, so not only is the program self sustaining, it also continues to add to its own capitalization, allowing more businesses to benefit.
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