The Regional Economic Development Center (REDC) in Raymond recently established a $1 million Revolving Loan Fund to provide critical gap financing to businesses and entrepreneurs in its service area thanks to federal funding through the Economic Development Administration (EDA).
The EDA grant can be accessed by businesses located in Tax Cuts and Jobs Act Opportunity Zones, of which there are seven in the REDC’s coverage area. Funds will be matched with $250,000 in local funds. (A list of zones is on NHeconomy.com. Businesses can access the application on the REDC website.)
The fund is expected to create nearly 300 jobs and generate $15 million in private investment. The grant will fund bridge loans and regular loan financing to small- and medium-sized businesses for a startup, expansion, or continuous operations. It will also support technical assistance for businesses.
Laurel Adams, president of REDC, says the REDC applied for these federal funds before the COVID crisis and while the new fund is intended to help businesses grow, it is not structured as a COVID recovery program.
“Most of our loan funds are designed to fill critical financing gaps that banks can’t fill,” Adams says.
During the past couple of years of economic growth, the REDC fielded more than $3.5 million in loan requests annually. Adams expects banks will tighten credit in the coming months and there will be less startup funding available.
For more information about the EDA’s Opportunity Zones, visit eda.gov/opportunity-zones.
For more information about the REDC, visit, redc.com.