SLVDRG ready to assist businesses in economic revitalization
Bolstered by an increase in funding from the U.S. Economic Development Administration, San Luis Valley Development Resources Group is mobilizing to help local businesses revitalize during the economic downturn.
“Our objective with the funds from the Economic Development Administration is to help re-ignite commercial lending with our local banks,” said Kevin Wilkins, executive director of San Luis Valley Development Resources Group. “We anticipate pent up demand for capital and a lot of movement in business lending once the local economy is in a predictable recovery. This demand will come from businesses exiting the market through sales to new entrepreneurs, startups resulting from an acceleration of trends, and new opportunities responding to market changes caused by the disruption.”
The supplemental funding came to San Luis Valley Development Resources Group (SLVDRG) as part of the CARES Act passed by Congress in May of 2020. The funds, totaling $968,000, further capitalize SLVDRG’s Business Loan Fund and are focused on the retention and the recruitment of businesses in the San Luis Valley.
According to Wilkins, the supplemental funds are directed for use in conjunction with local lenders, at a zero percent interest rate, for the dual purpose of providing a lower blended interest rate for borrowers as an additional incentive to work with banks on reinvesting in business for a stronger survival posture, and to stimulate commercial lending by sharing risk and offering more intensive loan servicing to borrowers through the San Luis Valley Small Business Development Center.
“In short, the goal of the supplemental funds is to strengthen a local bank’s economic disaster recovery efforts and incentivize lending for banks and borrowers by lowering risk and the blended interest rate,” explained Wilkins.
Businesses, or banks, interested to learning more about how these funds can be used to boost a business project are urged to contact SLVDRG loan officers Tonya Owsley or Marc Bellantoni at (719) 586-6099.