The Centralia City Council Monday night will be asked to participate in the USDA’s Intermediary Relending Program.
City Manager Kory Smith says the city will seek $1-million that would be paid back at one percent annual interest over 30 years. The proceeds will be used to create a revolving loan program for the city to spur economic development and increase employment opportunities within the city with a goal of alleviating poverty. Smith says the interest generated through the program will be used to pay off the loan in full with no additional funding sources being required.
The program will make available loans not to exceed $250,000 at a 5-percent interest rate payable up to a period of 15 years. Loans under the program will not finance more than 50-percent of the total cost of any project.
Smith says loan applications will first be reviewed by city staff to ensure completeness of the application and pertinence to the goals and missions of the program. The loans will then be reviewed in detail by a newly created seven-member loan committee which will be comprised of local bankers and higher education officials. The committee’s recommendation will then be taken to the council for ultimate approval or denial.
Smith says the program will give the city an additional means of spurring economic development. He notes when speaking with developers this program has been looked upon very favorably and anticipate it being an appealing program for many years to come.
