PACEDC Receives Rural Development Funding
Palo Alto County Economic Development Corporation has been awarded a grant of $70,000 from the U.S. Department of Agriculture, according to an announcement from Senator Tom Harkin (D-IA). The rural development funding will help establish a revolving loan fund to assist small and emerging businesses in Palo Alto County
“Rising energy costs and the weak dollar are having an effect on rural businesses and Iowans trying to get a business off the ground,” Harkin said. “These rural development dollars are critical to provide Iowa businesses with the resources they need while at the same time, adding jobs to Iowa’s economy. I congratulate the Palo Alto County Economic Development Corporation on this competitive funding.”
“A revolving loan fund is an essential tool for business expansion and recruitment,” said Executive Director, Maureen Elbert of Palo Alto County Economic Development. “We are very excited to learn that our application has been approved and we were awarded the maximum amount of $70,000.”
Economic development is key to the survival of Palo Alto County, Elbert explained. The purpose of establishing a revolving loan fund is to assist borrower requests for “gap” financing. This type of financing fills the void between the total cost of the project and the total amount of funds the borrower has available from other sources such as owner’s cash, commercial bank loans, and government funding.
“With the development of a revolving loan fund, Palo Alto County Economic Development Corporation (PACEDC) will be able to assist small businesses with gap financing,” said Elbert. “Incentives such as fixed rate, low interest, and/or long-term financing are important to a business wanting to locate or expand within our county. We appreciated the assistance we received from Chris Mercer, Community Development Manager of USDA Rural Development with their USDA Rural Business Enterprise Grant. We also look forward to working with the PACEDC Revolving Loan Fund Review Committee and receiving applications from businesses.”
The application and guidelines will be posted on the PACEDC website at www.paloaltoiowa.com. The Palo Alto County Revolving Loan Fund will certainly assist with economic opportunities. Funding from this project will create 16 jobs.