State Senator James Seward announced new funding available for local small businesses through the Herkimer County Industrial Development Agency’s revolving loan fund during a press conference at the Herkimer County Chamber of Commerce on Thursday morning.
Part of the $59.7 million in moneys awarded to the Mohawk Valley Regional Economic Development Council, the $50,000 will be used to help several small businesses in Herkimer County.
The IDA’s revolving loan fund began two years ago as a means to help small businesses achieve their goals. According to Assemblyman Marc Butler, the program began when several small business owners started to ask for help. In order to address the issue, the county legislature, IDA and Chamber of Commerce decided to begin a program through the IDA to help business in Herkimer County.
“So far the loan program has helped 22 small business in just two years,” said Butler, R - Newport.
Chamber of Commerce Executive Director John Scarano said the program is uniquely designed to the area. “The program is designed to assist commercial and retail businesses, restaurants, mom and pop shops,” he said. “There is also an agriculture component that focuses solely on the specific needs of area farms.”
“I’m delighted that $50,000 is coming to replenish the revolving loan fund,” said Seward, R - Milford.
Originally the program began with $50,000 funded by the New York State Assembly to disperse among small businesses in need of financial assistance.
The regional economic development council award will match the original amount.
“This award will help fill a gap and allow for more small business to receive assistance,” said Seward. “At the end of the process, $100,000 will be replenished to continue assisting small businesses.”
The revolving loan allows small business owners to borrow up to $4,000.
“Small businesses are given $2,000 in pure grant and if they need it a loan worth $2,000, with an interest rate of two percent for two years,” said Butler. “Out of the 22 businesses that have received the loan 16 have already paid it back, so people are responding very well to the program.”
Although the Herkimer County IDA revolving fund has helped many small businesses so far, the program is not a means of full financial support
“The program is for businesses that need help obtaining equipment, to help get the job done. It is not there for job creation or to save a business,” said Scarano.
For Information regarding the Herkimer County IDA revolving loan fund program, visit the Herkimer County IDA website at www.herkimercountyida.com.