{"id":21045,"date":"2014-02-13T08:48:51","date_gmt":"2014-02-13T13:48:51","guid":{"rendered":"http:\/\/raleighpublicrecord.org\/?p=21045"},"modified":"2014-02-13T08:50:24","modified_gmt":"2014-02-13T13:50:24","slug":"city-loan-pool-expected-to-start-again-lending-soon","status":"publish","type":"post","link":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/news\/2014\/02\/13\/city-loan-pool-expected-to-start-again-lending-soon\/","title":{"rendered":"City Loan Pool Expected to Start Again Lending Soon"},"content":{"rendered":"

A year after Raleigh established a second revolving loan pool for city businesses<\/a>, the fund is almost ready to make its first loans. The new fund, which was created out of a city-run program to help new downtown businesses that couldn\u2019t get traditional loans, will be available to small businesses across the city.<\/p>\n

Raleigh created its previous $300,000 \"Trig<\/a>[\/caption]<\/p>\n

A year ago, City Council members voted to roll the outstanding loans into a new revolving fund run by the Raleigh Area Development Authority and make the loans available to small businesses throughout the city. <\/p>\n

\u201cOur goal is to have at least $250,000 on hand before we start marketing the program to the banks,\u201d said RADA\u2019s Wallace Green, adding that he hopes to start marketing \u201csome time in the first quarter, optimistically.\u201d<\/p>\n

The Raleigh Economic Development Partnership\u2019s website still features a web page devoted to the loan program but Business Assistance Program Manager Luther Williams said the authority has passed from the partnership to RADA.<\/p>\n

Green said RADA\u2019s new responsibilities include collecting and servicing the original loans; more than $100,000 has already been repaid. RADA is also handling the sale of four vacant city-owned homes on Whistle Court, a property the city originally purchased for a stormwater construction project.<\/p>\n

\u201cWe borrowed funds from our bank to rehab the first two,\u201d Green said. \u201cWe currently have one of those under contract waiting for a closing date. The proceeds after expenses will go into the loan fund\u201d and some of it will go into rehabbing the third and fourth homes. <\/p>\n

\u201cNow we\u2019re back into residential sale season, our hope is that within the first six to eight months of this year, we will sell all four houses,\u201d he said. <\/p>\n

Green said RADA has spent the past year marketing the homes, drawing up loan policies and creating the RADA Community Investment Corporation to manage the revolving fund. When the lending pool reaches $1 million, RADA can apply to the U.S. Treasury to become a \u201ccommunity development financial institution.\u201d That would entitle it to apply for up to $2 million in federal funding it can use for more loans.<\/p>\n

Green said that when RADA starts lending money, it will follow similar guidelines to Raleigh\u2019s predecessor loan pool. The emphasis will be on helping established businesses rather than start-ups, and RADA will work with banks, for example, by providing added money for marginal loans.<\/p>\n

\u201cOur goal is to be a community small business lender in partnership with cities and banks,\u201d Green said. \u201cCertainly not to compete with banks.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

A loan program the city set up last year needs more money before it can start lending again to local businesses. The program was previously run by the city for downtown businesses, but will soon be available for small companies across Raleigh.<\/p>\n","protected":false},"author":24028,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[1142],"_links":{"self":[{"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/posts\/21045"}],"collection":[{"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/users\/24028"}],"replies":[{"embeddable":true,"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/comments?post=21045"}],"version-history":[{"count":0,"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/posts\/21045\/revisions"}],"wp:attachment":[{"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/media?parent=21045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/categories?post=21045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theraleighcommons.org\/raleighpublicrecord\/wp-json\/wp\/v2\/tags?post=21045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}