By 1812Blockhouse
The Richland County Board of Commissioners recently held a meeting to discuss several vital initiatives, including the Revolving Loan Fund (RLF) Administration agreement. This program is designed to provide low-interest loans to local businesses in need of gap financing. Here’s a detailed overview of what was covered.
The Revolving Loan Fund: An Overview
The Revolving Loan Fund (RLF) is a financial resource established to support local businesses by offering low-interest loans for expansion or equipment purchases when traditional financing options fall short. The RLF has been instrumental in helping businesses sustain operations and create jobs, particularly in the manufacturing and industrial sectors. However, it has also supported retail and restaurant businesses in the past, such as the improvements at Skyway East.
Loan Administration and Requirements
Jotika Shetty from Regional Planning presented the details of the RLF agreement, which is renewed biennially with the Department of Development’s Office of Community Development. The primary objective is to ensure proper administration, due diligence, and accountability for these funds.
Key points about the RLF include:
- Loan Purpose: The fund aims to bridge financing gaps for businesses that already have some level of traditional financing but need additional funds for expansion or equipment purchases.
- Job Creation: A critical requirement for loan approval is the creation or retention of low to moderate-income jobs.
- Application Process: The application process is comprehensive, involving a detailed review and a commitment to job creation, followed by accountability checks to ensure compliance.
- Interest and Income: The county does not pay interest on these funds. Instead, businesses repay the loans with interest, which the county retains for similar economic development activities.
Challenges and Opportunities
Despite the advantages, the RLF has seen limited recent activity. The last significant loan was closed and the fund currently holds around $50,000 available for new loans. The Commissioners hope that the rising interest rates and economic conditions will drive more businesses to utilize this funding resource.
Several challenges were discussed:
- Eligibility Criteria: Businesses must create jobs that fall within the low to moderate-income range, which can be a limiting factor.
- Process Hurdles: The effort required to go through the loan application process can be daunting for small businesses.
- Loan Committee: The review committee, similar to that of Mansfield’s loan committee, includes finance professionals and minority representatives, ensuring a fair evaluation of applications.
Economic Impact and Future Prospects
Commissioner Darrell Banks emphasized the importance of these funds in retaining and creating jobs within the community. The Board remains optimistic that with adequate promotion and support, more businesses will take advantage of the RLF, particularly given the current economic climate with high inflation and rising interest rates.
In addition to the RLF discussion, the meeting covered various other topics:
- ARPA Expenditures: Approval of funds to reimburse health expenses and administrative costs related to COVID-19.
- Opioid Settlements: Approval of a resolution regarding settlements with Kroger, contributing to the abatement of the opioid crisis.
- Food Service Contract: Challenges with the existing contract for jail food services, prompting the need for a new request for proposals (RFP).
Image by Credit Commerce from Pixabay
