County expands Revolving Loan Fund for Small Business
(Woodbury, NJ) – The partnership between Gloucester County and the Cooperative Business Assistance Corporation (CBAC) has expanded to provide $250,000 in small business loans to local business owners.
Freeholder Director Robert M. Damminger and Freeholder Heather Simmons, Liaison to Economic Development said today that Gloucester County Small Business Revolving Loan Fund has been reseeded with $50,000 from the county and $200,000 from CBAC that they received from NJ Community Capital.
Director Damminger said, "What began as a $100,000 investment to provide Gloucester County start-ups and growing small businesses with the opportunity to expand has exceeded all of our expectations. Through the county and our partnership with CBAC reseeding the loan fund by $250,000 we are able to help small businesses leverage ten times that amount in loan funding."
Freeholder Simmons said that in June of 2014 the Gloucester County Board of Chosen Freeholders created a $100,000 Small Business Revolving Loan Program for Gloucester County start-up and existing businesses. The program, in partnership with CBAC, who administers the program, leverages the county loans with other financial tools and products that has helped increase the funding opportunities to small businesses.
Simmons said, “Small businesses comprise ninety percent of our business community, their economic impact in our county is enormous. They have also been hit hard with respect to being able to receive traditional loans from the banking industry. We have seen this revolving loan fund help our small businesses receive funding for acquiring space, inventory, equipment, marketing and working capital purposes. It is what they need to survive in this business climate.”
Simmons said that the partnership between CBAC and the county is what really makes the program a success. During first year of Small Business Revolving Loan Fund eight loans were closed. In addition to the county loan fund monies, the county worked with CBAC as the funding source to close an additional 22 small business loans totaling $569,400. As of today the partnership has resulted in 30 new Gloucester County small business loans between the Gloucester County and CBAC leveraged financing since 2014 to help and support small business grow. Cooperative Business Assistance Corporation, a New Jersey based nonprofit economic development lender, ranked #1 in the U.S. for the total dollar amount of SBA Microloans loaned to businesses in 2015.
Simmons said, “There are applications in for loans right now. For every dollar the county invests in this Revolving Loan Fund we see that come back tenfold in our county. And, depending on the industry, hiring just one person can create a multiplier effect of creating 4 to 7 induced jobs.”
“The small business that took advantage of this program range from small local restaurants to Financial Planning businesses. Virtually any type of for-profit small business is eligible for the loan program,” said Freeholder Simmons.
Loans closed under the Gloucester County Small Business Revolving Loan Fund include:
· Blue Plate-restaurant-Mullica Hill
· Daily Diva Jewelry-online jewelry
· HMF Advisors-financial advising-Glassboro
· Lillian James Salon-hair salon-Turnersville
· Predicate Academy-online youth technology training-Swedesboro
· Lil Art House-Paint Party Studio-Pitman
· Gina Pensabene-original owner of Lil Art House-Pitman
· Signature Automotive LLC
To obtain a Gloucester County Small Business Loan fund application please contact the Office of Economic Development at 856-384-6930 or visit www.gloucestercountynj.gov.