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EDA discusses revolving loan fund, microloans and grant strategy to revive downtown
Summary
Board members debated design and purpose of the EDA's revolving loan fund, including eligibility criteria, microloan options, interest-rate incentives and the need to coordinate with Main Street and town planning to attract private investors.
Board members spent much of the meeting outlining how the EDA should deploy recovered loan funds to catalyze downtown investment. Members emphasized the need for a clear mission, eligibility criteria and a process for application and approval before actively seeking or administering grants.
One member framed the central problem as a "chicken-and-egg" situation: private investors are more likely to act when a project pipeline and incentives exist, but the EDA needs investors to justify grant applications. Suggestions included offering microloans or shorter-term loans, keeping interest rates low to attract developers, and coordinating grant applications with Main Street and the planning commission.
Brandon Archer of DHCD provided guidance on reuse of recovered funds: "All money is yours to use at your discretion," he said, and asked that funds be reinvested into projects similar to the existing Industrial Revolving Fund. Members discussed whether loan terms should match existing loans (2.5% was mentioned) or be set lower to spur redevelopment, and agreed to pursue grant-research and an initial mission statement to guide lending criteria.
The EDA also reviewed a construction update on an upstairs-apartment rehabilitation project, which reported drywall and trim work completed and an anticipated construction finish in June pending final inspections and permanent financing.
