PLATTSBURGH — Adirondack Economic Development Corporation is partnering with the City of Plattsburgh to provide administrative support for the city’s Revolving Loan Fund.
The agreement was approved at the Common Council’s April 17th meeting.
The goal of this partnership is to “increase the city’s capacity to administer its funds to foster economic growth and development in the city,” a news release said.
“AEDC is delighted to work with the City of Plattsburgh to reinvigorate this loan fund,” Executive Director Victoria Duley said.
“There are great opportunities for small businesses and community growth through this capital and we can’t wait to get to work in partnership with the city and its businesses to deploy these investments.”
The city will begin accepting applications on May 1. Information about the revolving loan fund can be found at https://www.cityofplattsburgh-ny.gov/department/community-development/revolving-loan-fund.
ABOUT
According to a news release, the city defines the Community Development Revolving Loan Fund as a gap financing measure used primarily to support urban communities by providing decent housing and a suitable living environment.
In addition, it expands economic opportunities, principally for low and moderate income persons.
The fund is a “self-replenishing pool of money, utilizing fees, interest and principal payments on old loans to issue new ones.”
The fund provides “access to a flexible source of capital that can be used in combination with more conventional sources, such as bank loans. With competitive rates and flexible terms, the fund provides borrowers with access to an affordable financing source while lowering the city’s overall risk.”
“The Community Development Revolving Loan Fund is a tool for revitalization and growth and I look forward to working with both community members and AEDC on projects that will have an impact in our community,” Director of Community Development, Courtney Meisenheimer, said.
QUICKER PROCESS
With this partnership, the revolving loan fund, which had been defunct for several years before being brought back after the 2023 Margaret Street reconstruction project took a financial toll on downtown businesses, the city hopes processing applications will be quicker now.
“Right now, our department has limited capacity to fully intake, process, (and) underwrite an entire loan alone for a community member,” Meisenheimer told the council at its work session April 17.
“And so we’re going to hope to work with AEDC in using their services and their specialties to underwrite our loans.”
The contract with AEDC will cost the city $7,500 and last until Dec. 31, 2026.
For those familiar with the Revolving Loan Fund process already, Meisenheimer said the partnership with AEDC isn’t changing much.
“The process will still remain largely the same in that someone who’s interested in getting a loan, they’ll do an initial intake application. If there seems a fit for the program, they’ll do a full application,” she said.
“That’s where our friends at AEDC will take over and assist that person in moving through that application process, helping them collect all the necessary documents, fill out the form. That will then go in front of AEDC’s loan review committee — that’s the committee that meets on a regular basis — and when the city has a loan up for review, we will have city representation at that committee.”
Meisenheimer said that committee will then make a recommendation to approve or deny the loan conditions and then that, a package of information detailing the project and its financials, will go to council for final approval.
She said the process would typically take upwards of five or six months before but that should not be the case moving forward.
Right now, the city has “a lot of funds” in its reserve just sitting there and interest is being paid on it annually, Meisenheimer said.
“So (if) we get these loans out into the community and the city is able to actually collect that interest, we can use it to continue to grow the fund.”
NEXT STEPS
Those who are seeking more information about the fund can visit the city’s website, email cdrlf@cityofplattsburgh-ny.gov or call 518-536-7642.
Mayor Wendell Hughes said it was important to get the city’s revolving loan fund resolution passed.
“I think it’s good for attracting businesses to the downtown,” he said.
“Let me just say any place in Plattsburgh, not just limited to downtown.”