PLATTSBURGH — The Town of Plattsburgh has a new tool to bring in businesses and help existing enterprises expand.
The Town of Plattsburgh Local Development Corp. has signed an agreement with the Adirondack Economic Development Corp. that allows the town to provide low-interest loans to businesses.
REVIEW PROCESS
Local Development Corp. CEO Philip Corell said the Adirondack Economic Development Corp. will review loan applications and make recommendations on which ones the town should act upon.
"We're pleased to be working with the Adirondack Economic Development Corporation to provide some small loans for economic development in the North Country, and specifically in the Town of Plattsburgh," he said.
JOB REQUIREMENT
Local Development Corp. Vice President Tim McCormick said businesses need to hire at least one new employee for every $15,000 they borrow. The loans are available at plus or minus 2 percent of the prime interest rate.
The money can be used for such moves as capital improvements and inventory acquisition but not for debt financing.
Corell said the Local Development Corp. must meet the provisions of the Public Accountability Act of 2005. Copies of its required reports and audits are available on the Town of Plattsburgh website: townofplattsburgh.com.
"All of this has to be very transparent," he said.
LONGTIME LENDER
This is the Local Development Corp.'s first loan process. The agreement allows it to use Adirondack Economic Development Corp.'s expertise in making loans.
Adirondack Economic Development Corp. Director of Lending Services Nicole Wright said the organization is a 501(c)3 nonprofit that has been around 27 years. It focuses on small-business lending and training, she said, and has about $1 million available for loans at present, strictly for small businesses.
Its offers a variety of small-business loans to businesses in the 14 northernmost counties in New York.
OTHER FUNDS
The Local Development Corp. continues to offer its own revolving-loan fund. That has about $250,000 available at present, Corell said.
The town is hoping to make a third funding option available to local businesses.
Town Supervisor Bernie Bassett said they recently applied for a $200,000 Community Development Block Grant Microenterprise grant through the New York State Housing Trust Fund Corp.'s Office of Community Renewal.
It would allow for grants of between $5,000 and $35,000 to existing or new micro-businesses. Each company would have to create at least one new full-time equivalent job held by or made available to a person from a low-income or moderate-income home.
Bassett said the town will use the Local Development Corp. to help make decisions for its Microenterprise Program, which will also make them aware of businesses that could be eligible for the two loan programs.
"These are just more ways to help economic development in the town," he said.
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