City starts work on small business loan program | News

Anthony Prinz, Jacksonville assistant city manager, presented the small business revolving loan fund concept to the Jacksonville City Council at its Jan. 7 meeting.

The program is similar to the Jacksonville Onslow Economic Development Partnership’s Community Business Loan Fund. JOEDP is a nonprofit that accepts grant funding and tax-deductible contributions that are used to provide loans to small businesses in Onslow County.

The city of Jacksonville’s program is planned to focus specifically on downtown businesses.

“What we’re trying to do is jump on their bandwagon, if you will, of a program that’s already existing, but focus our efforts on downtown,” Prinz said. “We feel very strongly that downtown redevelopment is only going to be successful through entrepreneurship, small business development.”

Prinz said it’s also important for the city to support small businesses in order to have a strong, diversified economy.

Redeveloping downtown has been a core goal of city leaders for years but moving forward hasn’t been easy, with numerous challenges. But, just like other North Carolina communities, Prinz said downtown can succeed if city leaders and others continue to promote growth and development.

“Whether it’s focusing on small businesses or working on infrastructure and appearance, like the streetscapes and things of that nature, or working with property owners to come up with ways to rejuvenate the older buildings that are down there or figuring out ways to build on parcels that don’t have buildings on them, we’re looking at it from all different angles, trying to generate some significant energy,” Prinz said.

Prinz said it’s also important to city leaders that efforts focus on enhancing the history of downtown while still bringing in new development, since both have value as part of the revitalization effort.

Prinz said staff are asking the city council to provide seed money to get the program started, and then as the program gets underway, more and more funding can be added each year.

“As the loans are repaid, the money is then lent out again,” he said. “You just rinse and repeat, and so, it’s a snowball effect, if you will. These aren’t grants, so the money will come back. It will be reinvested and reinvested for years to come.”

There is also the issue of repayment, and the trust that small business owners will make the repayments.

But according to Prinz, JOEDP’s Community Business Loan Fund, for example, has already loaned out a considerable amount of money from other revenue sources that to this point, have been repaid in full and on time.

“The way that I look at it, I feel like there’s a lot of integrity in the program, not only from the lender, but also from the borrower,” Prinz said.

The program also isn’t designed to allow businesses to make major additions or renovations, but instead to help with smaller needs, like new equipment or additional hires.

“In some cases, we’re just giving an existing business a leg up so that they can grow their capacity, they may be able to hire more people, who really knows what the circumstances are,” Prinz said.

“But it’s an opportunity for our small businesses to leverage resources at a low interest rate to help grow and prosper.”

During the Jan. 7 meeting, the council gave Prinz and staff authorization to talk with JOEDP to put together a framework for a contract that would allow the two entities to work together.

The effort would involve JOEDP administering the program on behalf of the city.

After establishing contract terms, Prinz said staff will seek final approval from council, with the goal of having the program in operation by the end of the year, which will help guide future funding requests.

“Just to see this level of investment coming from the city and downtown, I think, should give everybody confidence that we’re heading in a good direction,” Prinz said.