Main Street business loan applications available

Sarah Adler, state director of U.S. Department of Agriculture Rural Development, spent Dec. 13 shopping in Gardnerville's downtown district.

Adler said she wanted to experience firsthand the area of Main Street Gardnerville, the literal reach of the revitalization program which, months earlier, her own organization had funded with $56,000.

"I spent two hours in the business district," Adler said at a meeting at Sharkey's Casino on Dec. 15. "I was thrilled with the service and the quality and variety of products and also with the information business owners were willing to share about other businesses."

With her husband's birthday in mind, Adler had set out not only to purchase gifts, but to gauge the district's signage, parking and other amenities.

"It's a friendly, helpful, warm atmosphere," she said. "I feel super about my staff having made an investment in this organization and community."

Adler was one of about 30 people who attended a kick-off party Dec. 15 for Main Street's revolving loan fund.

According to USDA Rural Development, the $56,000 grant is being used "to establish a revolving loan fund to provide financial assistance and incentives for the expansion of existing small business ventures and to assist new small and emerging private business enterprise."

Gardnerville Manager Jim Park called the loan fund a "prime opportunity."

"What it allows you to do as a business operator is to come forward with a below-market interest rate, around 4 percent," Park said. "I bet a lot of us have had trouble accessing capital in the marketplace because of the economic downturn.

"The No. 1 goal of Main Street Gardnerville is to grow businesses in the community and to grow jobs in the community."

Eligible business owners can download a loan application online at www.mainstreetgardnerville.org.

"Just the last couple of days, I've had two people contact me about opening businesses in the district," said Main Street Program Manager Paula Lochridge. "Several different people are definitely interested in the loans. It's a great opportunity for folks struggling who really want to improve their business status."

To apply for a loan, a business owner must be a Main Street member and located within the district. They must obtain permission from the property owner of the business location if they do not own the property themselves. They also must attach a statement with their application regarding the purpose of the loan and anticipated cash flow for repayment of the loan.

Main Street Gardnerville, a nonprofit organization, acts as the lender, but an independent loan council consisting of banking representatives and Douglas County Comptroller Claudette Springmeyer makes the final decision on loan applications.

"That way there is no favoritism," Main Street board member Ken Miller explained in a previous story.

Loans are available in amounts ranging from $1,500 to $10,000. Interest rates are around 4 percent and repayment 1-5 years. There is no pre-payment penalty.

Main Street loans may be used for signs and awnings, remodeling or rehabilitation of buildings, the purchase of additional equipment or inventory, working capital, business expansion or leveraging with other grants, such as energy conservation grants.

"I want to give myself more working capital, to do more purchasing, or pay off all my debt," said Debbie Keller, owner of Heirloom Antiques, which opened along Highway 395 in May. "Especially in this economy, you want to pay off as much debt as possible."

Keller used credit cards to start her business and now hopes to secure a Main Street loan to pay off those balances and lower her interest rate.

"I'm holding my own financially, but it certainly would help lowering rates," she said. "I want my business to stay around. I don't want to be gone in two years. I'm in it for the long haul."

For more information about Main Street Gardnerville or the revolving loan fund, contact Lochridge at 782-8027 or at plochridge@mainstreetgardnerville.org.