HREDC announces new revolving loan fund program
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Corey Mehaffy, executive director of the Hannibal Regional Economic Development Council announced Friday the Board of Directors of the Hannibal Industrial Development Company has officially adopted a new Revolving Loan Fund Program in support of small business.
Established in 1952, HIDC is designed to provide gap financing to new or expanding businesses, which will induce participation from private lenders. Loans may also be utilized for retention efforts.
Businesses located in Marion and Ralls counties are eligible for loan assistance.
The purpose of the new RLF Program to attract and assist in the startup of new businesses in Marion and Ralls counties.
Additionally, the loan will provide funding for small growth projects as well as gap financing for larger projects.
The goal of the RLF is to assist in economic development through providing access to funds for clients who do not fit the traditional model of private bank loans.
According to Mehaffy, as a part of the economic development efforts to support small businesses in Marion and Ralls counties, area businesses and citizens have purchased stock in HIDC.
“Those cash contributions are used to establish a revolving loan fund for gap financing,” Mehaffy said. “The HIDC disburses money in the form of loans at interest rates, which are at or below market rate to small businesses or to businesses that cannot otherwise borrow capital.
“As the loans are repaid, the grantee uses a portion of the interest earned to pay administrative expenses and adds remaining principal and interest repayments to the RLF’s capital base to make new loans.
“I am grateful for the foresight of the original shareholders to establish this RLF. In 1952, $200,000.00 was a significant fund balance.
“Given the current need in our area, it is our goal to grow the fund to over $500,000.00 and beyond in the coming months.”
Mehaffy said he is currently meeting with a number of businesses and individuals in the area that are interested in purchasing stock in HIDC to help grow the RFL.
“As a small business too, I need to look at cash flow, but I appreciate this opportunity to invest in our community’s future,” said Jimmy O’Donnell, a local business owner.
Eligible applicants include for profit businesses existing as a legal business entity including but not limited to sole proprietorships, limited liability companies, S corporations, or C corporations.
Loans of up to $25,000 are available and the loan terms are negotiable depending on applicant need, capability and current market rates.
In addition to the HIDC RLF program, HREDC was recently approved as a KIVA US Trustee allowing the organization to offer a microlending program.
Kiva offers the world’s first personal micro-lending website, enabling everyday people to pool small lending contributions to entrepreneurs across the globe to include 0 percent interest loans, $0 fees, up to $15,000.
The loans are Crowdfunded by people all over the world who lend as little as $25. With HREDC’s partnership with LISC, Borrowers can qualify for a LISC match of up to $15,000 as well.
“I am excited about our partnership with LISC and Kiva for microlending,” said Maria Kuhns, HREDC entrepreneurship specialist.
“This provides another option for local business owners to gain access to capital.”
For more information on how to invest in HIDC, please contact HREDC at 573-221-1033 or via email at director@hredc.com.
For more information, visit https://hredc.com/resources/hannibal-industrial-development-company/
HREDC works to promote financial investment in Hannibal, and Marion and Ralls counties.
For more information on the organization, please visit their website at www.hredc.com.
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