Impact of our Revolving Loan Fund
– By #MillerSD
Last week, I was visiting with other Economic Development professionals around the state about our programs here at On Hand Development and they were so surprised in the success of our most significant program, our Revolving Loan Fund (RLF). I decided it might be best to gather some information on our most significant program, and let my community know what kind of impact it has on Hand County and how other communities envy having that option for businesses.
First a little background… On Hand Development Corporation (OHDC) was created in 1987 by a group of citizens to help keep the Hand County area vital and growing. We have been "on hand" and working toward that goal ever since. The mission of On Hand Development Corporation is to maintain and assist in the expansion of existing businesses and support the growth of new businesses while striving to improve the economy of the Miller area.
OHDC established a Revolving Loan Fund (RLF) to provide a source of financing, which may not otherwise be available within the community of Miller, for local, expanding or startup businesses. These funds are utilized for the purposes of “gap financing” in developing additional employment opportunities or retaining current employment levels. “Gaps” occur when expansion or startups lack the funds to meet equity requirements of private lenders or need a lower interest rate.
Our RLF started from a grant from USDA for $100,000. In 2011, we had five loans for a total of $132,000. Currently, we have eight loans out in Hand County for over $620,000. Our RLF is available for any business in Hand County.
The objective for the RLF is to continue a positive and proactive business climate, which encourages business retention/expansion and act as a catalyst in attracting new primary employment opportunities for Hand County. The fund also encourages the creation and retention of permanent employment opportunities in our area. As of Today, these eight businesses enrolled in our RLF provide 178 jobs in Hand County.
We work with a number of different partners with our RLF. Some of our partners include; GOED, NECOG, Grow SD, Dakota Resources, Heartland Power, SD Small Business Association, and the REED Fund. We assist each business in finding a partner that fits their needs if they need assistance.
It’s really hard to quantify Economic Development because so much of what we do is intangible but I understand the need to calculate our impact. I also realize that most folks like to hear numbers and statistics so I did a little digging into our archives. I found that to date, our RLF has impacted 67 businesses in Hand County and 420 jobs.
I hope this research and information gives our community a better sense of the impact of our RLF. I am so proud of our programs and our impact on our community and I hope that other communities continue to envy what we have. Call me (853-3098) and set up a time to learn more about our RLF and how it can help your business.