CITY OF MECHANICVILLE LAUNCHES REVOLVING LOAN PROGRAM FOR SMALL BUSINESSES
$2,000-$10,000 Loans Available
The City of Mechanicville was awarded a $99,999 grant from the U.S. Department of Agriculture to establish a Revolving Loan Program to assist area small businesses. Businesses with 50 or fewer employees may apply for loans ranging from $2,000 to $10,000. To be eligible, the business must either currently be located within the City, or have plans to move or expand into the City. Both established businesses, as well as start-up businesses will be considered for funding.
The City is participating in the program with several banks, including Key Bank, MBT Bank, and Ballston Spa National Bank. The participating banks will work with the City through the loan program to provide financial assistance to applicants whose needs go above what the program can provide. “Our goal is to make sure that those who will contribute to the City’s businesses community get all the help they need to be successful” said City Mayor Anthony Sylvester.
Eligible activities for the loans include: equipment purchases, working capital, real property and inventory purchases. Each loan recipient will be required to provide a 10% equity match on their loan. For instance, a $10,000 project total would be given a maximum award of $9,000 with the business owner supplying the remaining $1,000 of the costs. All loans have a fixed 0% interest rate, and either a 3 or 5 year repayment period, depending on the size of the loan.
On Monday, September 12th, applications for the Revolving Loan Fund will be available at City Hall: 36 North Main Street and at the Chamber of Commerce offices. Anyone interested in applying to the program should pick up an application between 9am-5pm. The completed applications are due by October 21st, and will be reviewed on a first-come, first-served basis. Applicants that can detail how their business will create local jobs and who can document difficulty in obtaining traditional funding are encouraged to apply.
The Revolving Loan Fund Program was awarded after the City’s successful Microenterprise Program. The Microenterprise program highlighted the high level of need that exists in the City for small business assistance, and the Revolving Loan Fund aims to satisfy some of the need that the Microenterprise Program could not address.
For more information on the program, please contact Alison Bates of Camoin Associates; the City’s grant administrating organization. Alison can be reached at: 518-899-2608 x107 or Alison@camoinassociates.com
Download application here -> FINAL Grant Application Package – USDA – Mechanicville