Small Biz Loan Plan Undergoes Changes
July 28, 2016 at 4:25 p.m.
The small business revolving loan program underwent some changes Wednesday when the Kosciusko Development Inc. board of directors met.
One $40,000 loan has been approved, pending the applicant's signature. The funds have been made available through the Indiana Office of Community & Rural Affairs.
KDI coordinator Kim Nance said the office encouraged KDI to take more risk-making business loans.
Nance said several people have picked up applications over the last few months, but have not returned them.
To open the loans up to more applicants, the board approved several changes.
Companies must have less than 25 full-time employees (instead of 5), and less than $42 million in annual gross revenue (instead of $1 million).
Regarding collateral personal guarantees of the principals are typically required (instead of "will be required.")
KDI President Joy Mccarthy-Sessing and Nance are responsible for providing information on the program and for distributing application materials. The loans' interest rate are fixed and set at the prime rate.
Applications are welcome from any business or industry chief executive officer wishing to expand an existing operation or establish a new operation in Kosciusko County.
The board also discussed current area news regarding the possibility of two ethanol plants under development in the county.
Land options have been secured near Milford by VeraSun and near Burket by LouisDreyfus. Both companies have indicated the possible development of ethanol plants. Ethanol is a corn-based liquid fuel, an alternative to gasoline used in the proper vehicle engines.
Another ethanol plant has been approved north of Rochester in Fulton County, near the landfill.
KDI board member Ron Truex said studies have shown ethanol plants should be at least 70 miles apart. He reminded the members that livestock producers also use corn as feed and a corn "deficit" already exists in Indiana.
Truex is general manager of Creighton Brothers.
He said eight weeks ago corn was selling for $1.85 a bushel, and is now $3 a bushel without the actual demands of ethanol production.
The state also is paying a 51-cent subsidy per gallon of ethanol produced and companies can return their investment in three to four years with the subsidy.
"What do we do when the subsidy ends and food is so expensive no one can afford it?" Truex asked.
Bruce Kidd, director of entrepreneurship for the Indiana Economic Development Corp., is guest speaker at the next Kosciusko County Manufacturers' Council meeting.
The group meets Nov. 15 from noon to 1:30 p.m. at the Ramada Plaza Hotel in Warsaw. Costs are $15 to attend. Reservation deadline is Nov. 10. [[In-content Ad]]
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The small business revolving loan program underwent some changes Wednesday when the Kosciusko Development Inc. board of directors met.
One $40,000 loan has been approved, pending the applicant's signature. The funds have been made available through the Indiana Office of Community & Rural Affairs.
KDI coordinator Kim Nance said the office encouraged KDI to take more risk-making business loans.
Nance said several people have picked up applications over the last few months, but have not returned them.
To open the loans up to more applicants, the board approved several changes.
Companies must have less than 25 full-time employees (instead of 5), and less than $42 million in annual gross revenue (instead of $1 million).
Regarding collateral personal guarantees of the principals are typically required (instead of "will be required.")
KDI President Joy Mccarthy-Sessing and Nance are responsible for providing information on the program and for distributing application materials. The loans' interest rate are fixed and set at the prime rate.
Applications are welcome from any business or industry chief executive officer wishing to expand an existing operation or establish a new operation in Kosciusko County.
The board also discussed current area news regarding the possibility of two ethanol plants under development in the county.
Land options have been secured near Milford by VeraSun and near Burket by LouisDreyfus. Both companies have indicated the possible development of ethanol plants. Ethanol is a corn-based liquid fuel, an alternative to gasoline used in the proper vehicle engines.
Another ethanol plant has been approved north of Rochester in Fulton County, near the landfill.
KDI board member Ron Truex said studies have shown ethanol plants should be at least 70 miles apart. He reminded the members that livestock producers also use corn as feed and a corn "deficit" already exists in Indiana.
Truex is general manager of Creighton Brothers.
He said eight weeks ago corn was selling for $1.85 a bushel, and is now $3 a bushel without the actual demands of ethanol production.
The state also is paying a 51-cent subsidy per gallon of ethanol produced and companies can return their investment in three to four years with the subsidy.
"What do we do when the subsidy ends and food is so expensive no one can afford it?" Truex asked.
Bruce Kidd, director of entrepreneurship for the Indiana Economic Development Corp., is guest speaker at the next Kosciusko County Manufacturers' Council meeting.
The group meets Nov. 15 from noon to 1:30 p.m. at the Ramada Plaza Hotel in Warsaw. Costs are $15 to attend. Reservation deadline is Nov. 10. [[In-content Ad]]