Due to the tight credit environment, Harrisonburg Downtown Renaissance’s Economic Development Committee has made it a priority to search for new loan and financing sources to assist downtown businesses. At the committee’s May 3 meeting, USDA rural business specialist Joe Boatwright shared information about USDA financing options. He explained that since Harrisonburg’s population is under 50,000, downtown businesses can qualify for several programs:
The Business & Industry Guaranteed Loan Program provides lending institutions with loan guarantees for small businesses of 80 percent up to $5 million. Loans up to $25 million also can receive guarantees but at a lower percentage. Businesses may qualify for loans for working capital, machinery and equipment, and real estate with repayment terms ranging from 7 to 30 years.
Another source of assistance is USDA’s Renewable Energy Systems & Energy Efficiency Improvements Program. Grant funds may be used to pay up to 25 percent of the cost of uses such as purchase and installation of equipment, construction or improvements, and energy audits. For more information about USDA programs, contact Boatwright at 540-463-7124 #119.
In addition to the USDA program, HDR also offers microloans of up to $35,000 through the Enterprise Development Group of Arlington. The HDR office can provide more information about this application process. Contact us at email@example.com or 540-432-8922.