Agenda 01/13/2004 - Laserfiche WebLink

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The committee would review each application with the intent of structuring a loan package that serves the needs of the business and yet satisfies the program guidelines. All loans would be made at competitive interest rates and allowance would be made for such things as deferring repayment during the immediate startup months. The committee will represent a significant number of years of combined expertise in the lending process to assure the proper and efficient handling of both the loan and repayment processes. A personal guarantee shall be required on all loans and the decision of the loan committee will be final. Relending Plan The purpose of the revolving loan fund is to support and develop small and emerging businesses within the City of Martinsville. With the large number of people in our area who remain jobless after numerous cut backs and closings at local business and industry, it is our hope that these funds could be used to promote entrepreneurship within the community. '; · One example of a planned project in Martinsville is Fowler, Stone, Tucker, LLC. Fowler, Stone, Tucker is planning to start up a warehouse sales event company. This company would take advantage of liquidated stock items to hold huge warehouse sales events throughout Virginia, North Carolina and South Carolina. This project will create one salaried position and 3 - 5 full time wage positions to start. As the company grows there is potential for additional full time employment. Interest rates and other terms of the loan will be comPetitive in the marketplace but will be attractive to small business borrowers. An emphasis will be placed on funding projects that promote businesses sectors not currently represented in the Martinsville area. Technical assistance would be made available to potential projects through the Longwood College Small Business Development Center (SBDC), located on site at the Chamber of Commerce. The SBDC could provide assistance with business and marketing plans as well as additional funding sources. At this time, there are no other funds available to add to the revolving loan fund. However, the City of Martinsville will continue to pursue alternative resources for additional funding to expand the loan capabilities of the program. Project priority and timelines will be established by the loan review committee. Currently there is only one project in the pipeline who has an immediate need for financing through the revolving loan fund. The proposed budget for this project is attached as part of the form SF 424 submission.