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Ulster County to relaunch $1.5 million revolving loan fund for small businesses and nonprofits
Summary
Economic development director Kevin Lynch told the committee on Dec. 9 that Ulster County will relaunch a $1.5 million revolving loan fund to finance small businesses and nonprofits, with outreach beginning Dec. 6 and loans expected to range from $25,000 to $150,000.
Kevin Lynch, Ulster County director of economic development, told the committee on Dec. 9 that the county will relaunch a $1,500,000 revolving loan fund intended to help small businesses and nonprofit organizations access low-cost financing.
Lynch outlined an outreach timeline that begins Dec. 6 with a public campaign, an online pre-application eligibility quiz on Dec. 9, a kickoff webinar on Dec. 16 and a follow-up webinar in January. Lynch said the county aims to gather stakeholder feedback, build an application pipeline and publish an FAQ from webinar questions. "The conference was great…there is great deal of opportunity in the hemp sector," Lynch said, noting interest from experts about commercialization and marketability.
The program is noncompetitive, Lynch said: all eligible businesses and nonprofits may apply, but the program is structured as a co-lending product that requires applicants to provide a commitment letter or similar documentation from a financial institution. Lynch said staff will review existing financials and pro formas to evaluate applicants’ ability to repay.
Lynch described a scorecard that will be used to offer concessions—such as reduced interest rates or alternative term structures—based on how a project aligns with county economic-development priorities. He said loans are expected to range from $25,000 to $150,000 and that the county will conduct targeted outreach to non-English-speaking communities and to local chambers and business associations.
A legislator asked whether applicants must show current or projected revenue. "We're certainly gonna look at existing financials, but we're also gonna look at pro formas," Lynch replied, adding that both current and future revenue will factor into underwriting.
Lynch framed the relaunch as part of a broader effort to catalyze local financing and to engage banks under co-lending arrangements: "we want to engage the banks in economic development in Ulster County," he said. Lynch said additional program details, including loan terms and formal application dates, will be shared as the county finalizes outreach and webinars.
The committee did not take formal action on the relaunch at the Dec. 9 meeting; Lynch presented the plan and the committee heard questions and noted outreach partners.
