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New Loan Program Launched by Chamber
TraverseCONNECT and the Traverse City Area Chamber of Commerce are proud to announce a new business lending program called the Regional Revolving Loan Fund (RRLF). It's a result of more than two years of preparation and training of Chamber staff to have the Traverse City Area Chamber Foundation certified as a regional fund manager by the Michigan Economic Development Corp. The Chamber Foundation will administer federal Community Development Block Grant (CDBG) funds in Grand Traverse and Benzie counties.
The Regional Revolving Loan Fund will have available more than $2.5 million in CDBG funding for economic development projects that fulfill the national objectives to eliminate blight and/or create low to moderate income jobs in Grand Traverse and Benzie counties. The fund is available for start-up companies through mature businesses. Eligible projects include financing or re-financing real property, equipment, inventory and receivables, financing debt to exit or transition ownership or to finance working capital.
The funding range is up to $500,000. As the initial RRLF loans are repaid, the funds will be available to finance a wider range of economic development projects across the 10-county region.
The Chamber is excited to add this new lending program to its wide range of business loan options available through the Traverse Bay Economic Development Corporation (TBEDC) that include small business micro loans, energy efficiency loans, development funds and more with a total loan portfolio nearing $1 million.
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The Chamber's Development Fund provided $220,000 in financing for the new restaurant called The Franklin in downtown Traverse City.
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Summary of current loan activity:
Sub Micro Loan Fund
| 1st Q 2014
| As of 12-31-13
| Pending Inquiries
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Loans up to $7,500
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2 loans/$15,000
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5 loans/$27,500
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$7,500
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Provides start-up/seed money
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$7,500
| Supported by 5/3rd Bank
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$7,500
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Energy Efficiency Fund
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Loans up to $50,000
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-0-
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9 loans/$157,528
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$15,000
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For energy savings/efficiency projects
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Supported by TCLP
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Development Fund
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Loans up to $250,000
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2 loans/$320,000
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3 loans/$170,000
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$250,000
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For high-growth companies
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$100,000
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Expansion/production/capacity growth
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USDA Loan Fund
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Loans up to $100,000
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1 loan/$18,000
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2 loans/$75,000
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$45,000
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For working capital, machinery, etc
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| $20,000
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Supported by USDA
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| $20,000
| TOTALS
| 5 loans/$353,000
| 19 loans/$430,026
| +$472,500 |
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The Access to Capital Update is a quarterly report on business financing activity through TraverseCONNECT. For more information on available Access to Capital services, contact Economic Assistant Kathy Bussell at kathy@tcchamber.org or (231) 995-7115, or Senior Vice President of Finance and Administration Laura Galbraith at galbraith@tcchamber.org or (231) 995-7110. There's also more information on Access to Capital programs available at www.tcchamber.org.
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