UDBDA officially announces launch of revolving loan fund program
UNIONTOWN — The city Downtown Business District Authority announced the official launch of its revolving loan fund program for new or expanding businesses within the central business district at its regular monthly meeting Tuesday.
“We are very excited to have partners and be getting our loan program off again,” said Denice Ferranti-Robinson, UDBDA Chair.
Board members hope the new revolving loan fund program will encourage new businesses to locate downtown by offering low-interest loans, and Ferranti-Robinson added that the new revolving loan fund program was “a little more expanded” than a previous version of the program that eventually became inactive over a span of several years.
That’s because the new program will allow for up to $10,000 in loans from UDBDA funds up to a maximum of five years in addition to lending from Bridgeway Capital, which has committed a minimum of $100,000 into the loan fund as a participating lender.
“Prior to this, we had a $5,000 limit for five years of money restricted for façade improvements or code updates,” UDBDA member and former Chair Steve Neubauer said.
Fay-Penn Economic Development Council will administer the fund, having offered to do so last summer due to the UDBDA’s limited personnel. Fay-Penn will accordingly handle credit reports and money collection, Neubauer said, having noted in August that those receiving loans through the program would pay Fay-Penn, which would in turn write a check to the UDBDA.
Neubauer first reported Fay-Penn’s interest in administering a loan fund program for the UDBDA to the authority in August as well.
“That’s fantastic,” Mayor Bernie Kasievich said Tuesday of the new revolving loan fund. “This is what we needed. I guess the most important thing … is making it known that it’s available. We’ve had that problem in the past where people didn’t know these kinds of programs were available.”
Neubauer emphasized that local partner banks succeeded in streamlining the loan application process, reducing it to a single page.
“You’re not going to have to go through three, four, five different steps to (apply),” Neubauer said.
Applicants may apply for renovations, new equipment, expansion plans, employee training, operating capital and other business needs.
Representatives from Fay-Penn, Bridgeway Capital, PNC Bank and First Federal of Greene County were present in council chambers for Tuesday’s announcement.
Uniontown Redevelopment Authority Executive Director Mark Rafail said the UDBDA revolving loan fund questionnaire for applicants would be posted in the next several days on the city’s website, uniontowncity.com, which is only several months old and still under development.
In other business, Ferranti-Robinson reported she received a call from a McClure & Wolf representative last month clearly explaining the company’s audit pricing and the scope of its audit. Ferranti-Robinson had questioned the cost of an audit report formally approved by the authority in February at last month’s meeting.