SV EDA transfers funds to keep up with demand of Small Cities Block Grant
Wednesday, November 20, 2013 2:13 AM
The Spring Valley Economic Development Authority met for its November meeting last Wednesday. The main topic of discussion was the portion of the revolving loan fund dedicated to downtown development.
Economic development director Cathy Enerson asked the board to once again consider transferring $30,000 to the 1 percent revolving loan fund. The 1 percent fund is a special fund set by the EDA for downtown revitalization to be used in conjunction with the Small Cities Block Grants (SCBG).
The response to these programs has been very positive, so the initial amount put into the fund by the EDA doesn't cover all the applicants.
"We started out with the fund at $35,000 and said we'd see how it goes and add as we go. So that is where we're at now," Enerson explained.
In October the EDA transferred $30,000 from the 3 percent fund to further ensure they had enough funds to support the requests coming in for the Small Cities Block Grants. But, this amount was only enough to cover the applications at that time.
"There's been an incredible amount of activity in the community," Enerson said of the demand for the SCBG.
The number of recent transfers is due in part to community and economic development consultant Michelle Vrieze beginning the review process of these applications, as well.
Enerson continued saying, "There would be less than 15 [loan applications approved] most likely, but there could be 12, 13 or 14 loans that come out of this. So if we can apply another $30,000 or $40,000 to it then I know I have that support that we need."
At this time, prior to the action at the meeting, $65,000 has been assigned to the special fund with $64,500 pending.
The entire revolving loan fund, which has historically been used only for economic development that results in employee gain or retention, has a balance of $248,930 with $30,000 to be taken out when the Glad Gatherings loan is finalized. It is important to note, this fund is only replenished by the loan paybacks.
EDA President Steve Himle reminded the group that the funds can be unassigned if they are not fully used. The group may also consider putting a cap on the amount of the fund in the future.
After much discussion the EDA approved the transfer of $30,000 more to the 1 percent revolving loan fund.
In other business:
* The board reviewed changes to the EDA's loan documentation checklist and guidelines, as there have been some discrepancies between different loan applications as of late. The hope is the changes will clarify the procedures for the board, as well as the applicants and their bank.
* Enerson reported the results of the Spring Valley Chamber of Commerce's questionnaire, which was handed out during the recent business expo. Many of the results were quite positive and pertained ideas from the community for the future of the city and for next year's expo.
* The next EDA meeting will be held on December 11 at 8:30 a.m.