GLENVILLE Glenville will soon have another resource in its economic development toolbox, as its Local Development Corporation prepares to start offering loans next year to new businesses.
Earlier this year, the town established the not-for-profit LDC to spur commercial growth as part of its 2012 Strategic Plan. The group will use $565,000 in U.S. Department of Housing and Urban Development funds from the Community Development Block Grant, which can only be used for economic development projects. LDC Chairman Jim Martin said two seats on the five-member board still need to be filled.
Without establishing the board, the town would be unable to use the HUD funding for local projects.
“If we did not do this, this community would have lost almost $600,000,” Town Supervisor Christopher Koetzle said. “(The board) stepping up and taking the time as volunteers to do this allows the community to have almost $600,000 invested in it.”
Martin gave a presentation on the organization’s progress at the Wednesday, Nov. 7, Glenville Town Board meeting. Members have been working to finish incorporation documents to submit to the state to register as a nonprofit and start an account with the state Comptroller’s Office.
The LDC is planned to offer different types of loans depending on the business, from smaller projects with less paperwork to larger loans with a more extensive review process. Loans would be offered to existing businesses seeking to expand, purchase equipment or upgrade infrastructure as well as new businesses trying to locate in the town.
Martin doesn’t envision the LDC’s role to be a one-shot deal, though.
“I want to be able to come into one of these meetings 10 years from and say the fund is capitalized at $2 million and we made three loans this year,” Martin said. “This is not a stagnant amount of money. If we do this right, administer this right, this can be a brilliant program.”