Area Five Agency got awarded with a grant of $55,000 . The agency offers aging and community services and Mike Meagher, the executive director, plans to support local businesses with loan grants. Area Five is going to split the grant money so as to make loans to business owners.
The Area Five Agency applied for the ‘USDA Rural Development Grant’ during last spring. It has been done to support small businesses having less than 50 employees and not exceeding $1 million in gross revenue. On receiving grants, Area Five has gained the potential to create a loan pool for small business owners.
Meagher, confesses that the Area Five Agency keeps applying for grants from State and the money that it receives is used up to fund small businesses in need. So far, it gave $500,000 to 40 business owners operating in the area during past five years.
The mission of the agency is to help small businesses prosper and to create employment opportunities. Start-up or existing businesses can apply for business loans. They just have to present an acceptable business plan and a proper repayment schedule. The ‘Area Five Loan Review Board’ scrutinizes a business organization and tries to find out whether it is eligible for loans. Then it gives its approval. The loan term has been kept as five years and the interest rate is kept 4 percent. The grant of $55,000 will enable Area Five Agency to make more loans to US businesses.
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