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Hagerstown tweaks revolving loan fund terms; staff urge outreach to local businesses
Summary
Staff proposed minor revisions to the revolving loan fund: clarify ineligible costs for rental investment projects, require loan repayment to start either one month after completion or six months after loan funding, double some fees, and transfer program administration to the Department of Housing and Community Development; fund balance is just over $500,000.
City staff brought back proposed housekeeping changes to Hagerstown’s revolving loan fund, which has not been updated since 2017. Amanda Gregg and Margie Joe described modest policy changes and administrative updates intended to modernize the fund and make it more attractive to businesses.
Key proposed changes included: clarifying ineligible costs for rental‑investment projects so the fund remains focused on businesses; changing the repayment trigger so payments begin one month after project completion or six months after loan funding; increasing (doubling) certain fees last revised in 2013; and shifting administration to the Department of Housing and Community Development following an internal reorganization.
Staff said the fund currently has six outstanding loans and a balance a little over $500,000, and they recommended a renewed outreach campaign to alert the business community that funds are available. The loan review authority reviewed the proposed changes and expressed general agreement; the council asked clarifying questions about repayment timing, borrower access and safeguards to preserve the fund for gap financing rather than full project funding.
Council did not vote on final amendments at the work session; staff will return with any additional edits and plans for community outreach.
