Main Street establishes revolving loan fund for businesses

As the holiday season approaches, the Gardnerville Main Street program is making real one of its past wishes.

The revitalization group is establishing a revolving loan fund that will offer below-market-rate loans to businesses in the downtown district.

The U.S. Department of Agriculture Rural Development has funded the program with $56,000, which will get things rolling with a handful of loans not to exceed $15,000 each, with an interest rate of about 4 percent.

Eligible business owners can use the funding to renovate their facilities, expand their operations, or do something else that improves their business and the downtown atmosphere.

"Come Jan. 15, I would like to hand out a check to the first business and say, 'Here's your loan,'" said Ken Miller, Main Street board member and chair of its economic restructuring committee.

Miller said the nonprofit organization will be acting as the lender, but that an independent loan council will be making the final decisions regarding loan applications.

"That way there is no favoritism," he said.

The loan committee will consist of representatives from Bank of America, City National Bank, Carson River Community Bank and Wells Fargo, along with Douglas County Comptroller Claudette Springmeyer.

"We'll gather the applications and then submit them to the loan committee, and the loan committee will make the decision," Miller said.

On Oct. 21, Michael Sharp, Bank of America's market president for Carson City and Carson Valley, presented a $6,500 check to the Main Street program.

"We don't just give out money - we look at the details, how it will evolve and what it's all about," Sharp said. "We are very excited about our participation in the Main Street organization and the upcoming loan committee."

Following the presentation, the Main Street board of directors voted to use up to $4,000 of the donation to purchase software for loan document origination and loan servicing.

"The loans may go up to five years, or maybe 10," Miller said.

A meeting to kick off the revolving loan fund will be 8 to 9 a.m. Dec. 15 at Sharkey's Casino.

For more information, contact Paula Lochridge, Main Street Gardnerville program manager, at 782-8027 or at plochridge@mainstreetgardnerville.org.