Magaletti Dry Cleaners Check Presentation
As lending institutions tighten their lending procedures and people are looking to venture into starting a business to fulfill a lifelong dream or perhaps supplement their income, The Montgomery County Chamber of Commerce and Montgomery County Business Development Center have seen an increase in inquiries from prospective and current business owners looking for capital to increase their cash flow. Many people that contact the organizations are looking for a grant-type of program where they can secure funding with little or no outlay of their own collateral. Unfortunately, those opportunities do not exist at either organization.
The Montgomery County Business Development Center (MCBDC) administers a revolving loan fund, capitalized from program income (loan repayments with interest), of the County’s HUD Small Cities Community Development Block Grants. Loans are available for businesses with job creation/retention components. Loan proceeds may be used for real estate acquisition, renovations, machinery and equipment purchases and working capital. Competitive below market rates and terms are available. These loans require at least ten percent equity investment by the business into the project and are for gap financing purposes.
“The agency’s mission is to sustain and enhance the quality of life in Montgomery County through the creation of jobs,” explains Administrative Director, Ken Rose. “Our programs are designed to diversify the employment base of the County by adding jobs through the attraction, retention, and expansion of firms with the hope to alleviate unemployment and underemployment in the County.”
“While business attraction is a primary goal of the agency, retaining and expanding existing businesses is vital to the economic health of our area especially in this current economic climate. We work directly with local employers to promote capital investments and job creation, and to reduce the risk of closure or relocation out of the County.” Through the MCBDC, Montgomery County businesses can access loans and grants acquisition and/or expansion. Long-term tax-exempt bond financing with lower interest rates is also available.
“The Chamber has seen a significant increase of inquiries for financial resources,” states Deborah Auspelmyer, Chamber President. “Our mission is to actively support the business community and our micro loan program is an avenue for business owners to utilize when looking to expand or begin their business venture. We also have consulting services available to discuss business plans, marketing options, and general business practices.”
The Chamber provides two micro-loan opportunities for business start-up or expansion; the Downtown Association For Business (DAB) Loan Program and Rural Business Enterprise (RBE) Loan Program.
The DAB program provides loans up to $25,000 to assist new or expanding businesses located in selected areas in the City of Amsterdam. The interest rate is 3%, and at least one full time job should be created. The loan will cover up to 75% of costs, with 25% coming either from the owner or loans from other sources. The loans will be primarily made for buildings, land, fixed assets and capital equipment items.
The Chamber’s Board of Directors recently voted to expand the zone region for this program so that it includes the majority of the business districts throughout the city. “We recognized that there were opportunities to assist business that were just over the previous zone parameters. Our goal is to assist as many businesses as possible. After review and consideration, the committee and board voted on expanding the zones to better serve the business community,” explains Auspelmyer.
The RBE program provides loans up to $50,000 to assist new or expanding businesses located anywhere in Montgomery County outside the City of Amsterdam. The interest rate is 1% below prime, and at least one full time job should be created for every $25,000 in funds loaned. The loan will cover up to 49% of costs, with 51% coming either from the owner or loans from other sources. The loans will be primarily made for buildings, land, fixed assets and capital equipment items. The RBE program is managed by the Montgomery County Partnership, which reviews and approves the prospective loans. Final loan approval is required by the U. S. Department of Agriculture. The USDA is an equal opportunity provider, employer and lender.
“When we thought we would loose everything because the bank stopped loaning money, The Chamber really came through for us and helped save our business,” states Ileanna Magaletti, recipient of the DAB loan for her business Magaletti Dry Cleaners in downtown Amsterdam.
Both organizations want to remind the public of the funding opportunities they have available but also help quell the misconception that there are several grant opportunities for business start-up with no financial obligation on the part of the business owner. “Both of our organizations are here to assist the businesses in Montgomery County any way we can,” conclude Auspelmyer and Rose. “Our doors are always open and we welcome the opportunity to meet with you.”
Ken Rose, Director of Montgomery County Business Development Center can be reached at 518-853-8334; Deborah Auspelmyer, President of the Montgomery County Chamber of Commerce can be reached at 518-853-1800 ext. 11. Information regarding their loan programs are available on their websites as well, www.mcida.org and www.montgomerycountyny.com.
Tags: Small Business Loans