Gettysburg residents and businesses could soon be eligible for low-interest loans through a revolving loan fund that uses money originally provided by a 2006 community development grant.
The fund, called the Historic District Revitalization Revolving Loan Program, is designed to increase job security and purchasing power for residents, as well as the diversification of the local economy, according to Nicolette James, Finance Director for the Borough of Gettysburg, and Borough Council intern Michael McHenry. The program has been discussed by the Council since 2014.
There is $278,000 set aside for the program, which has been factored into the 2020 budget. The community development grant was originally used as a loan to Kennie’s Market. The loan was repaid in 2012 and has only been used for coronavirus relief since then.
The loan will be divided into two components: the Residential Property Maintenance Loan and the Emerging Microenterprise Loan. Both loans will help address several borough issues that have been identified.
The Residential Property Maintenance Loan, designed to assist historic district residents with improving and maintaining their homes, has a $5,000 minimum and a $50,000 maximum. These loans may be used to repair exterior residential properties within the historic district and for financial assistance with meeting borough code compliance.
“The goals of this loan are to restore the beauty of the historic district and improve safety in these neighborhoods,” McHenry said.
The Emerging Enterprise Loan is meant to attract new “microenterprises,” businesses with ten or fewer employees, into Gettysburg. These loans range from $25,000 to $75,000. According to McHenry, the goal is to diversify the Borough’s economy, provide stable jobs for residents, and increase the tax base.
The revolving loan fund is expected to continue to fund residents and businesses going forward as it is replenished through application fees and interest payments on prior loans. McHenry said the growth of the fund will allow for the creation of larger, more frequent loans, as well as the ability to tackle more community-based needs.
“We want multiple applicants and we want ones that fit the vision for the program,” James said.
In order to begin the program, there are several safeguards that must be in place, according to McHenry. These include a partnership with an entity that can conduct credit checks, established and specific criteria for awarding the funds, and formation of a Loan Review Committee. The Borough Finance Department will be responsible for the disbursement of funds and collections of payments.