By Carla Howie
At the Economic Redevelopment Commission meeting held Dec. 30, two local business owners were approved to receive funding from the Mircoloan program. But what is it and why is it important to have?
The town council adopted a resolution in August 2011 establishing the Zionsville Small Business Microloan program. The Redevelopment Commission provided $200,000 from existing TIF revenue or tax increments to fund it. The program is designed to promote commercial vibrancy of the community and strengthen economic viability by providing loans to small businesses within the Zionsville TIF district.
There are no deadlines to submit an application for funding. Applications are classified as either Tier I or Tier II. Startup businesses with lesser business history are considered Tier I and capped with a loan request of $6,250.
Tier II applicants are shown to have significant business history and are able to provide relevant financial documentation are capped at $25,000. Security for the loans will consist of liens against assets; either real estate, inventory or equipment. A full list of lending criteria can be found online at www.zionsville-in.gov.
The first step to secure a loan from the Microloan program is to submit an application to the RDC, where it is reviewed and submitted to the Microloan committee for processing. If approved, it is re-submitted to the RDC for member recommendation and the partnering bank is authorized to release funds to the applicant for its designated project or purchase. Monthly payments are made to the bank whereby the bank re-disperses the loan payment and interest back into the Microloan fund. The funding cycle completes when the RDC regenerates the funds back into the businesses in the TIF district.
“I am glad to get loans out the door,” RCD member Brad Johnson.
Microloans approved on Dec. 30
Shari Jenkins – Restaurateur, 55 E. Oak St. Tier II, $25,000 for refrigerator equipment for new business development.
Darrin Marion – Proprietor – Darrin’s Coffee, 112 N. Main St. – Tier 1 – $6,250 for professional grade coffee and espresso machines and ice maker.