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March 18, 2009 For more information, contact: Regional Loan Programs Keeping Jobs, Private Investment in Rolla ST. JAMES—It only took 18 months to loan $625,000 to area businesses, and now Meramec Regional Planning Commission and its lending arm, the Meramec Regional Development Corp. are looking for ways to recapitalize the fund so they can continue to help businesses in the Meramec Region grow. “Interest in our loan programs is strong, despite the economy,” said Richard Cavender, executive director of MRPC. “As credit gets tighter, businesses look at all avenues of funding, and our programs fill the gap for businesses and reduce the risk for our local banks.” To recapitalize the funds, MRPC and MRDC need to raise matching dollars so they are now taking their message to banks, chambers, industrial development authorities and others interested in economic development. So far, $30,000 has been raised for the cause, including $4,000 from the Rolla Area Chamber of Commerce. The chamber made the announcement and presented the check at its monthly luncheon meeting on March 18. MRPC needs $125,000 of local funds to secure $500,000 in additional loan funds through USDA Rural Development’s Intermediary Relending Program (IRP). RACC’s $4,000 investment could leverage thousands of dollars, if history replays itself. Over 60 percent of the $625,000 IRP loan fund—$378,834—was invested in Rolla, Tonya Price, MRPC business loan specialist, told the Rolla Area Chamber of Commerce. Of the nine loans made through the IRP, five were in Rolla. In addition to the loan funds, these five projects generated nearly $2 million in private investments and created six jobs and retained 25.5 jobs. “That money is at work here in Rolla,” Price said. In addition to the IRP, MRDC also packages and services Small Business Administration 504 loans and another local revolving loan fund (RLF). Right now, MRPC is servicing three SBA loans in Rolla. Those projects total nearly $1.6 million. Two more loans are in the process of being funded. Over the years, MRPC and SBA have partnered with local banks on 10 projects in Rolla. SBA has provided $2.8 million in loan funds, which leveraged $7.6 million in private investment. Those 10 projects created 176 jobs and retained 61.5 jobs. The region’s other RLF was created through a grant from the U.S. Economic Development Administration and local match dollars from local counties. “Those funds have been loaned out twice now, and the $33,000 in that fund now is committed for a pending loan,” Price added. Right now, three Rolla businesses are using the RLF program. Their total investment is over $1 million. In the past, RLF projects in Rolla have generated private investment of over $4 million. Both the RLF and IRP are popular because of their flexibility. In addition to funding fixed assets, the RLF and IRP can also provide businesses with working capital and inventory. These loans offer a fixed rate below the bank’s rate for up to 15 years. All loans are made in partnership with local banks. “We are seeing layoffs here in our area, but that presents an opportunity for some of those unemployed persons who have an entrepreneurial spirit to start their own businesses,” Cavender said. “Our country was built by entrepreneurs, and it will be those kinds of people who turn our economy around. We need to be prepared at the local level to invest in those good ideas. Admittedly, many of these will be marginal businesses, and the MRPC/MRDC can help reduce that risk to our local banks. By partnering that way, we have successfully generated more economic activity in our region, including Rolla,” Cavender said. “It’s a win-win for all involved.” Businesses interested in making a donation to MRDC for IRP matching funds can contact Price at 573-265-2993 or by email at tprice@meramecregion.org for more information. MRDC is a 501©3 non-profit, and donations are tax-deductible.
CUTLINE: During Wednesday’s Chamber luncheon, the Rolla Area Chamber of Commerce presented a $4,000 check to Richard Cavender, executive director of Meramec Regional Planning Commission, to help recapitalize its business loan fund. Chamber leaders and MRPC staff on hand for the photo were, from left, Maria Carroll, David Duncan, Stevie Kearse, Caroleen Ferrell, Richard Cavender, Tonya Price, Maria Kardon, Pat Leaders, Sue Brown, Greg Stratman and Shad Becker. |