The Ogden city council has made a resolution that shall be a boost for small business owners. The resolution is in the city’s five year consolidated plan to create a Community Development Block Grant-funded “loan loss” program that is meant to promote business development.
The program’s aim is to bring about business development by leveraging grants so as to help small enterprises secure loans. The fund flow is from larger loan pool that can be used for securing funds for small business purposes.
Thus, small businesses can find a good source of grant when they are faced with a situation that other traditional loan and investment opportunities are not available. There is the general opinion that small businesses are facing a difficult time in securing loans for expansion, investment and as operating capital. This new “loan loss” program will help businesses to a great extent.
It is supposed to fill in funding gaps in cases when small businesses are so new that they can’t even meet some basic loan requirements. Filling in funding gaps will bring in lot of opportunities for small business owners to grow and retain jobs in the community. This new program will also block all form of ‘grant loans’ so as to ease securing of funds issued by Ogden Reinvestment Corporation (ORC). $3 million is available in the loan pool of ORC and the fund also has a 10 percent security backing. First $305,000 will be made available as Community Development Block Grant Fund and then it will be leveraged to $3 million in loans for the business community.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com