UDBDA meets with lenders for new loan fund
As it waits to rectify its finances with Uniontown City Council, the Uniontown Downtown Business District Authority (UDBDA) met with potential lenders Tuesday to discuss financial and technical assistance for re-establishing its revolving loan fund.
At its monthly meeting, the UDBDA consulted with representatives from investment firm Bridgeway Capital and nonprofit Fay-Penn Economic Development Council to explore the possibility of restoring the fund to assist downtown businesses.
The UDBDA currently has about $120,000 in an account earmarked for kick-starting the revolving loan fund, which has not been active for several years. However, due to a recent struggle with city council over financial records, the UDBDA currently does not have access to the funds.
In the meantime, Bridgeway Capital chief lending officer Jane Bittcher said her firm could provide an additional $100,000 to the fund to get it up and running.
“If that’s what you need to get (the program) started and enhance it, we’ll commit $100,000 to start it,” said Bittcher.
The UDBDA agreed last month to seek additional funding to assist businesses.
“We think it’d be good business to have partners like (Bridgeway Capital) and some of the banks in town to do small business development and support the entrepreneurial spirit,” said UDBDA chairperson Donna Holdorf, adding that the board has received inquiries recently from a few downtown businesses regarding available funds.
City council resolved last week to move the UDBDA under the supervision of the city’s accounts and finance department and department director Councilman Phil Michael.
Holdorf said she received a request to meet this week with Councilman Michael and Main Street Program Manager Rebecca Hilton to discuss the authority’s finances and establish the amount of money the UDBDA owes towards a $60,000 exit grant from the state Department of Community and Economic Development designated in 2012 that the UDBDA must match.
The board contends that it has already paid more than $30,000 towards the total cost. Any remaining costs will be paid using revolving loan fund money, leaving an anticipated $90,000 for the fund.
“It’s possible that we’re going to get our papers back in order to run the revolving loan fund because we do have some money. In conjunction with that happening, we’d really like to get back out in the central business district and re-energize a program that hasn’t really been around for a while,” Holdorf said of the loan fund that, in its previous incarnation, provided low-interest loans of up to $10,000 to businesses, primarily for facade and code improvement work.
Holdorf said the board would look to provide loans for amounts exceeding $10,000.
UDBDA board member Steve Neubauer said when the loan fund was previously active, all loans were repaid in full.
The board agreed to meet next month with bankers and potential lenders to further explore a new fund. If all goes well, the UDBDA hopes to schedule a subsequent meeting with business owners to discuss offering funding and assistance.
The board passed a motion Tuesday to move its regular meetings to 4 p.m. on the first Tuesday of each month at city hall.