$ 2.6 million in loans to 16 businesses affected by COVID | News, Sports, Jobs
16 more businesses in Chautauqua County affected by COVID-19 will benefit from low-interest loans.
On Tuesday, the County Industrial Development Agency’s board of directors authorized $ 2.6 million in loans from its new revolving loan fund. The money came from the US Economic Development Administration when it announced in September that IDA County had been selected as a recipient of a $ 10.5 million grant through the CARES Act. The loan fund aims to provide capital, in the form of low-interest loans, to businesses and nonprofits to respond to the economic damage resulting from the COVID-19 pandemic.
Entities approved for Round 2 funding include: The Service Manufacturing Group, Inc .; Monofrax, LLC; Dahlstrom roll shape; the National Center for Comedy; South Level Environments for Life, Inc .; Polish House of Kosciuszko Association, Inc .; Reg Lenna Theater; Cleaners of Chautauqua, Inc .; Falconer Power Sports, Inc. dba Harley Davidson of Jamestown; Lynn Development, Inc .; Ready About Sailing, Inc .; Rocky Karate; MKJM, LLC dba The Landmark; Scott’s Peek n ‘Peak, LLC; Maple Springs Inn; and Lidos Crescent Inn, Inc.
Rich Dixon, CFO of CCIDA, briefly discussed with board members how companies would use their funds. He said the Service Manufacturing Group was using its funds as working capital because they had existing suppliers and customers who were unable to pay for the services, creating a cash flow crisis.
“They feel they are on the right track to get through this difficult period”, Dixon said.
Monofrax obtained a working capital loan of $ 125,000. “They grew slowly, because COVID practically shut them down”, Dixon said, adding that they will use the money to buy raw materials.
Dahlstrom Roll Form received $ 55,000. “It’s for the equipment that will purify the air inside their facility. They will reduce pathogens by 90%, so that will clearly help the employees ”. Dixon said.
The National Comedy Center received $ 125,000. “We all know they have just been devastated by the lack of traffic coming in”, Dixon said.
Southern Tier Environments for Living, Inc. has had issues with its cash flow, Dixon explained. “They have a huge project here and their money just dried up and the expenses haven’t, so it will help them weather the storm as they go through this.” he said.
The Kosciuszko Polish Home Association, Inc. in Dunkirk has been closed for several weeks. “They canceled their events and lost a lot of their fundraising. … They hope to open soon and use that money to prepare for this, ” Dixon said.
The Reg Lenna Theater received $ 125,000 and Cleaners of Chautauqua received $ 100,000. Falconer Power Sports, Inc. dba Harley Davidson of Jamestown will use its funds for working capital.
Dixon noted that Lynn Development Inc., which owns the federal building in Jamestown, has not received rent from the call center since March and has in fact left the facility. “They will use this (loan) to pay taxes and other utilities”, he said.
According to Dixon, Ready About Sailing at Falconer will use their money to replace the rental equipment they sold to stay afloat.
Dixon said The Landmark will use its loan to make renovations to improve its outdoor seating. “This will help them attract more people to the establishment”, he said.
Scott’s Peek n ‘Peak LLC also received funding to improve outdoor dining.
Maple Springs Inn, which operates the Chautauqua Belle, received $ 50,000, Lidos Crescent Inn received $ 25,000 and Rocky’s Karate received $ 25,000.
In October, CCIDA awarded $ 5.7 million to 28 companies in its first round of funding.
Mark Geise, Deputy County Director for Economic Development and Executive Director of CCIDA, said: “We are delighted that to date we have been able to allocate over 80% of the funding provided by EDA in less than five months, helping over 40 businesses not only to last, but to create jobs. Our amazing CCIDA team have worked diligently to get this money to work in the community as quickly as possible, while ensuring that we are accountable, impartial and follow ACN guidelines.
County manager PJ Wendel also applauded the move.
“It is impressive that CCIDA was able to deploy a large majority of EDA funding so quickly, helping companies and their employees at this critical time,” he said. “It is also very encouraging to see that they have spread the funding across many sectors, businesses and nonprofits, large and small, and over 110 jobs will be created in the process. As I have always said, our return will be greater than our setback, and this funding is positive proof that not only will we recover, but we have another economic development tool to stimulate investment and creation of new businesses. jobs in this county for years to come. following the pandemic. “
At the onset of the COVID-19 pandemic, CCIDA, with the approval of the EDA, established an emergency working capital loan program of $ 250,000 with most of the available balance of its Al Tech capital. Trust RLF. This program provided 25 working capital loans of $ 10,000 to businesses struggling at the start of the COVID-19 pandemic. Geise noted that this program has been extremely effective, with 25 loan closings completed within four weeks of the program’s inception; however, this nearly depleted the Al-Tech Loan Fund and excluded several other companies from participation. This, together with the fact that CCIDA granted temporary deferrals of principal repayments to a significant number of existing loan clients, severely limited the agency’s ability to make new loans.
The CCIDA team, at the invitation of ACN, immediately responded with the documentation required to apply for funding. As part of the application process, CCIDA staff created a detailed plan for responsible and prudent deployment of funds in a manner that provides flexibility for beneficiaries as well as speed of deployment of funds to accelerate recovery. economy in the county. The newly created CCIDA RLF program is available to a wide range of industrial sectors, including professional services, non-profit organizations and other sectors that had previously been excluded from financing CCIDA loans through the Trust Fund. Al-Tech loan. As currently established, the new FRR offers loans of at least $ 25,000 and not exceeding $ 1 million, and working capital loans of up to $ 250,000, with an interest rate 2.44% (the lowest allowed).
The CCIDA Board of Directors will make a decision on Round 3 funding requests on April 27, with the deadline for applications being March 1.
Geise said application and program details are available upon request and urges anyone interested in applying to contact the CCIDA office at 661-8900.
He also thanked the United States Economic Development Administration for making this program possible. “This award was a game-changer for Chautauqua County and a testament to ACN’s confidence in CCIDA to quickly and effectively deploy the capital needed in our county to maintain and create jobs and accelerate economic recovery from the COVID-19, “ he said. “I express my sincere gratitude to ACN and our entire economic development team for mobilizing to obtain and deploy this funding on behalf of the county. We are committed to using an allocation strategy for this funding that is systematic, inclusive and equitable so that we can have maximum impact on businesses and the nonprofit community. “