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EDA lowers Revolving Loan Fund rate to 3% for small loans, offers refinancing to higher-rate borrowers
Summary
The Harmony EDA voted unanimously Dec. 4 to set a 3% interest rate for Revolving Loan Fund loans $25,000 or under, allow negotiated rates above that threshold, and notify current borrowers about refinancing options by Dec. 12, 2025.
The Harmony Economic Development Authority voted unanimously on Dec. 4 to change the interest-rate policy for its Revolving Loan Fund, setting a 3% rate for loans of $25,000 or less and allowing the EDA board, guided by the RLF Committee, to negotiate rates on larger loans.
Greg Schieber, an EDA board member, moved the change and Keith McIntosh seconded the motion; the board approved it without further discussion. The board’s rationale, presented during the discussion, compared current practice—tying rates to the Wall Street Journal prime rate—with neighboring jurisdictions that charge between 0% and 5% on similar gap-financing products.
The RLF ledger balance was reported at $104,527.43. Staff noted Bee Balm had paid off its loan in full and that other borrowers are current on payments. As part of the motion, staff will notify active loan recipients and offer refinancing to any borrower whose rate exceeds 3%; Katrina Hurley, CEDA, will notify existing loan recipients by Dec. 12, 2025.
Board members discussed trade-offs between a lower fixed rate and maintaining flexibility to address unintended consequences; the adopted policy aims to make the RLF more usable for gap financing while preserving the board’s ability to negotiate for larger loans. No vote tallies by individual members were recorded beyond the motion passing unanimously.
The change takes effect for newly originated loans meeting the $25,000 threshold; the motion also authorizes outreach to existing borrowers to present refinancing options.
