Mini-loan, grant programs launched | News, Sports, Jobs
TYRONE – The Borough Council has created a revolving mini-loan fund as well as a mini-grant fund to help businesses in Tyrone get started or continue.
He will use the equivalent of one year of the borough’s annual membership fee “Community enrichment” payment received for 15 wind turbine sites on a watershed it owns in the Township of Tyrone. The Council has designated $ 100,000 for the loan fund and $ 20,000 for the grant fund.
City Councilor Dave Snyder suggested the effort so that businesses that do not meet the common three-employee minimum requirement for federal and state financial assistance can access the money – especially businesses that employ subcontractors as an alternative to formal employment.
This requirement creates a “blind spot,” in those programs, said Snyder, who owns a cleaning company that employs contractors who have their own “Entities” and liability coverage, he said.
He applied for the Paycheck Protection Program for himself, but was unable to use it to pay these workers – although they can apply for a P3 themselves and are also eligible for the new unemployment compensation in the event of a pandemic, he said.
Some businesses are having problems due to the COVID-19 situation and may shut down, Snyder said.
Despite COVID-19, there is also energy for growth in the borough, officials said.
“There’s a lot going on in Tyrone now” said Borough Director Ardean Latchford. “We want to do everything we can to stimulate it. “
The loan fund would be “turning,” with money repaid over three to five years, making that money available for loan, said local businessman John Russell.
The programs could help in cases where renovation needs are great, Russell said.
Buildings in downtown Tyrone tend to be more difficult to bring into code compliance than buildings in other places, he said.
The program could also help in cases where there is a need that cannot be met by a bank, Russell said.
The program could be used for start-ups or those that already exist, officials said.
“Keeping a business is just as important” Mayor Bill Latchford said.
Altoona Blair County Development Corp. will manage the program, with a group of boroughs reviewing applicants.
The program will be similar to a county-wide micro-loan program that ABCD relaunched in December, using money that had been repaid under a revolving loan program started in 1997 with a grant. of $ 85,000 from the state.
This county-wide program has the requirement of three employees, Snyder said.
The new Tyrone programs could become a model for other boroughs, said Steve McKnight, CEO of ABCD.
ABCD will report to the borough on who receives the loans and how successful they are with using the money, he said.
“We can be a steward of dollars”, McKnight said.
For its loan programs, ABCD requires personal guarantees, so that borrowers “To have the impression that they are hooked”, McKnight said.
Paying off a small loan can sometimes help a business get a bigger loan, the mayor suggested.
“Absoutely,” McKnight said.
The fund is expected to grow due to interest payments “As long as you are doing good business” McKnight said.
He estimated that there could be a 5-1 ratio of successful loans to defaulted loans.
“It’s the risk” he said. “You are doing your best. “
Mirror staff writer William Kibler is at 949-7038.