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Pulaski County panel recommends tiered fees for revolving loan fund, adds micro tier
Summary
The Economic Development Commission recommended a new upfront-fee structure for the revolving loan fund—$500 for micro loans, $800 for small internal loans, and $1,500 for larger loans handled through the regional development company—to reduce administrative risk when applicants withdraw; the recommendation will go to county commissioners.
The Pulaski County Economic Development Commission voted to recommend a tiered upfront-fee schedule for the county’s revolving loan fund after staff reported two recent loan applicants withdrew during review.
Staff said the proposed change shifts from collecting a small administration fee with later invoices to collecting a single upfront fee that covers administration, attorney review, recording costs and, for larger loans, a regional development company (RDC) fee. "What I'm proposing is that any of the $20,000-plus loans that go to the regional development company have a $1,500 upfront fee and any loan that is done entirely internally is an $800 fee," the staff member said.
Commissioners debated whether the $800 internal fee is equitable across loans that range from about $2,000 to $20,000 and discussed a stair-stepped approach. The commission coalesced around a three-tier recommendation: $500 for micro loans, $800 for the small category, and $1,500 for larger loans. A motion to recommend those tiers to the county commissioners was seconded and passed by voice vote.
The staff said any excess between the collected fee and actual costs would be refunded to applicants; applicants remain responsible for direct costs such as appraisals. The recommendation will be forwarded to the commissioners for possible adoption.
