RISE Meetup 09/21/2022: Lake Country Development Loan Funds by Deborah Gosney

Deborah Gosney of Southside Planning District Commission shares her expertise on the Lake Country Development Corporation, which offers 2 loan funds to businesses in Virginia in Brunswick, Halifax, and Mecklenburg Counties.

Foreign executive director of southside pdc and our office is in south hill lake country development corporation was formed back in 1981 so we’ve been around a long time and we cover the same three counties as our planning district it’s halifax mecklenburg and brunswick so that’s who we we work with or any locating or expanding businesses and within those three

Counties lake country is a private non-profit 501c3 corporation and um we have had our eda and our irp program around for quite a while um the newest pool we have is a micro lending pool but this kind of just gives you a breakdown um the turquoise color is the eda pool we’ve created over the years now keep in mind this is since 1981 um 1 808 jobs retained 98. we

Um have loaned a total of nine million 407 319. and then that little green piece of the pipe there that’s the irp pool we have it’s not nearly what we have in our eda pool but it operates pretty much the same um and we created 99 jobs with that pool and then we the little tiny blue is the micro lending pool and that again that’s our newest pool um so it’s micro

Lending so you don’t see a lot it’s not huge job creation but we have created three jobs and retained 46 with that bull so if you guys have questions just stop me along the way so this is the breakdown of the three pools and you know the difference is the eda pool the irp pull as you can see a much larger pools with larger requests so you can you know get a loan

For up to four hundred thousand with eda 150 000 with rp um both of well both are three points below prime and i looked at prime this morning prime rates 5.5 percent but we have a floor and some of this is going to change guys i just got through explaining that our eda pool’s been defertilized so some of these rules you’re seeing are still federal guidelines and

We’re going to pull away from some of this particularly on this eda pool but right now we have a floor of three percent because three points below prime would put you two and a half and the old rule was we wouldn’t lend below three but i i’m i’m inclined to lend below three but we we got some work to do on that um we generally look for 10 to 15 percent equity

Injection um we we do offer working capital loans generally they will be for a term of five years um we tend to look for personal guarantees on that eda pool when the irp pool um but if you’re requesting monies for building construction or real estate you know we can go up to 15 years possibly 20. um if we get to secure and have a lean position on that real

Estate so the micro lending pool is what i’m thinking you guys would be more interested in that um we do the micro lending we can lend it like anywhere from five thousand up to 40. again this one’s three points now above prime so primes 5.5 so that would be 8.5 um five years is the term um i guess the the micro lending pool and this is my next slide no let me

Not get ahead of myself so eda pool irp um units of local government of course your private non-profit organization to eligible the micro loan pool is typically just for small businesses um of course this is our application and we’d be happy to send that to you guys um if you need it and if you are ready to borrow some money what i was going to say and it may

Be this next slide um with the micro lending pool we don’t it’s a little shorter turnaround because it goes to the loan review committee and they make the decision of whether to approve a not approved loaning we don’t have to take it to a board of directors with the eda and they are people um we do there’s one extra step that is we have to present the loan to the

Board of directors so it’s kind of a two-step approval process it goes to loan review committee first and then it goes to our board um for final approval so you know you can add an additional three to four weeks in for that additional step um as i mentioned you can clearly see along with small business as a partner because we have the contact and guys you if you

Take a look at that and be sure we have this correct catherine i’ve got you from mecklenburg lynn i’ve got you for halifax and we have brandon uh for brunswick is that is that accurate i think um you could either do catherine or brandon for brunswick brandon um uh the central region here is is really our staff here at longwood plus catherine so really anyone could

Help but okay for halifax it’s lynn yes okay so catherine oh brandon for brunswick okay um the eda pool for now um again some of this is probably gonna we’re gonna amend some of this but in the past we’d either needed a bank that you know we were gap financers so what that essentially means is we can’t compete with the bank which means we have to document

That with either a bank denial letter or a bank referral letter now we can work with the bank which means you go to the bank they say you know we’re interested in working with you but we would like for you to also um apply with lake country development corporation and the beauty of that is if we work with the bank the bank takes the first position on the collateral

And we subordinate to the bank and take a second so it’s a sweet deal for the bank um and it has been very successful in the past but again that was a federal guideline so we really don’t have to follow that process any longer but that’s for the larger pool um we always will request a credit report and the borrowers can pull their own credit report um and i’m

Sure sherry that when you work with them they know how to do that um but it’s a free credit report that you can get every 12 months so it shouldn’t cost to borrow anything to pull it um we’re always going to ask for a business plan that’s why we work so close with long load small business development center because we really want to see that business plan um we

Always ask to see proformers and they do that as well and if it’s an existing business we go back and ask for the last three years typically so this is where i was trying to get ahead of myself so this is just the process um of the eda and the irp funds versus the micro lending pool and again the only difference is you don’t have to get that board of directors

Approval on the micro lending pool and then this is our contact information um sanji here at the office is your primary contact um but ashley starves as her backup and of course you can always reach out to me i did it for years before i turned it over to sanji so it’s three of us in the office that could essentially work with you and answer your questions

Transcribed from video
RISE Meetup — 09/21/2022: Lake Country Development Loan Funds by Deborah Gosney By SOVA RISE Collaborative