Some of you may remember I was working on a loan program for businesses in the Town of East Greenbush. As the Economic Development Coordinator for the Town of East Greenbush I am reviewing many avenues regarding encouragement for existing businesses to grow and improve.
I completed my proposal and submitted it to Rick Matters for presentation to the Board in the coming months.
Under Cristo/Taylor/Matters leadership we would use this loan program to encourage improvements to businesses along Col Tpke. We understand the need for improvements along this corridor and would use this program to help revive 9&20.
Below is the proposal I submitted:
Town of East Greenbush
Loan Program Proposal
Ann Taylor
The following proposal is mirrored in great part by the SBA 504 Program. The purpose of the SBA 504 Program is to encourage businesses to grow. Knowing the obstacles we are facing in the Town of East Greenbush, in regards to re-establishing the Columbia Turnpike a.k.a. Rt. 9&20 Corridor, I based the East Greenbush Loan Program on many of the same founding principles as the SBA 504 Program.
The purpose of the East Greenbush Loan Program is to solicit funds from local businesses, namely financial institutions, insurance companies, as well as privately owned businesses such as those involved in the East Greenbush Business Alliance. The aggregate of these funds would then be available for East Greenbush business owners to apply for. Target figure should be $50,000 total as a minimum.
A committee would need to be formed to review applications; the Economic Development Coordinator would be the Chairperson of the committee. The committee should consist of representatives (all volunteers) from each financial institution and insurance company that contributed to the funds in an amount equal to or greater than $2,500. The reason for targeting these industry representatives is because they are experienced in reviewing credit applicants.
Applications would be drawn up based on basic credit applications from a financial institution. The Town of East Greenbush Loan Program applications would need to be reviewed by the town attorney before final approval and use.
The committee would review the applicants and approve/decline requests as well as make counter-offers to applicants if the committee deems a counter-offer necessary. Credit decisions should be based on the following criteria:
*Collateral available
*Business Debt/Income Ratio
*Personal assets available
*Personal Guarantee required
*Credit score
*Business Plan submitted
*Business projections for 5 year time frame
*Business and Personal Tax Returns (last 3 years)
*20% of aggregate cost of project to be capitalized by business owner
Description of the Program:
^Minimum to apply--$5,000 Maximum---$25,000
^Applicant must be established as a for-profit corporation, partnership or proprietorship
^Applicant must meet job retention/creation requirements (within 2 years of closing the loan process)
^Applicant must agree to remain at location for a minimum of 10 years.
^Loan Rate to be set at Prime (as quoted in the Wall Street Journal on the last business day of the month) + 1.00
^Interest income to be dedicated to the Town of East Greenbush deficit.
^Term of Loan to be determined by the committee and applicant based on credit request (amount) and project. Term not to be less than 12 months but not greater than 60 months.
^Monthly payments to be principle and interest payments. A 10 day grace period will be allowed. A late fee will be imposed of the greater of a $20 fee OR 10% of the original request.
^NO pre-payment fees will be imposed.
Purpose of Funds:
To repair, improve or expand the owner’s current structure either as required maintenance for the daily operations of the business OR for aesthetic purposes to enhance the market value of the structure/business for the effect of attracting more customers.
Ineligible Businesses:
Non-for-profit companies
Radio and television broadcasters
Gambling Facilities
Print Media
Lending Institutions
Investment Companies
Collection of income:
After 90 have lapsed and the Town has not received payment a legal collection process will begin. That process will be determined by the committee and the Town Attorney. Any fees associated with that collection process should be passed onto the applicant.
Please keep in mind Rensselaer County has programs available to businesses. They are more limited as to which type of businesses can apply. The program I have proposed is based on many of the same foundations for the county's programs. From there I "tailored" it (excuse the pun but I couldn't resist) to East Greenbush and what is needed on Col. Tpke.
ReplyDeleteI do realize this topic is not nearly as exciting as others but I wanted to take the time to make everyone aware that we are working on the issue of Col. Tpke.
As a business woman I understand the importance of a vital "business district" so to speak. With the right business comes sales tax revenue as well as more jobs in the community. This loan program would be the first step in establishing a relationship with the small business owner in town. It is a way for big business to help small business.
Ann, where is this plan now, and when will we see the implementation of this plan?
ReplyDeleteSounds great! Thanks for the countless hours you spend volunteering to get our town back on track.
ReplyDeleteI heard rumor that Burger King is the next business to leave 9 & 20, any truth to that?
ReplyDelete#2--Rick Matters has the plan and we are reviewing it. It should be ready for the July or August Board meeting.
ReplyDelete#3--thank you; it is my pleasure.
#4--I have not heard that. I asked Michael and he did not hear it either. It may be true but we do not know anything about it.
ReplyDeleteAnn, you are such a tremendous asset to our community. I can only imagine how much better our town will benefit from you being on the town board. You are a lady with a lot of great ideas and a real go getter. You take the bull by the horn so to speak and seek to MAKE IT HAPPEN. You are your own person and NOBODY owns you and I like that.
ReplyDeleteOur town has it's share of financial problems like many other municipalities, but you approach them with SOLUTIONS and I like that too. Thanks you for all you do for our town. Without a doubt speaking for myself of course EGB NEEDS you.
I have learned a lot reading the postings you and Mike have shared with the residents of EGB. You guys are BUILDERS and good ones a that. You lay the foundation and then you build. You guys are seeking to BUILD a better EGB, hey isn't that what we all want?
I would like to LEARN what the Dem. Party is doing to to BUILD a better EGB. I wish they would but out a blog and tell us all their ideas and solutions to reduce our town debt. Raising taxes should NOT be on top of their list.
Tired of All the Lies, you should host a blog for your party. Tell us all the great things you plan on doing to REFORM town government. Tell us you will follow the recommendations laid out for the town by the OSC. Tell us what you would do if a town employee did an act that caused the town a financial burden. Tell us you are more concerned about the town residents than the political party. Tell us you and everyone in your party will PLEDGE to run a CLEAN and HONEST campaign. Please tell us!! Ann and Mike, thanks for keeping your blog readers well informed on the issues and solutions.
Tired of All the Lies, why are you so SILENT on Mike and Ann"s blog? I will ask again, PLEASE PLEDGE you and the Dem. Party will run a CLEAN and HONEST campaign. This is a reasonable request to ask. The waters have already been stirred, it need NOT stir anymore. You seek to acquire the votes of the good residents of EGB thus demonstrate good faith in leadership by how you seek the votes.
ReplyDeleteMike and Ann you have shared so much information on your blog. I would expect if you both were elected you would continue to carry over in what ever format the theme of this blog, information. It's been our misfortune that you were not elected councilperson last year.
Bonnie--THANK YOU! I appreciate your kind sentiments.
ReplyDeletedoes anyone know how many people are employed by the Town of East Greenbush govt.?
ReplyDeleteThere are two very good answers #10:
ReplyDelete1.) Way too many!
2.)Not as many as the democrats would like!
i think this needs to be looked into...yes?
ReplyDelete