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The Organizational Meeting minutes is updated and a link for it can be found on the right of this page. Salary Addendum is attached.

Tuesday, June 15, 2010

Town of East Greenbush Loan Program by Ann Taylor

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.

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