The EDA administers in excess of $775,000 in revolving loan funds which are intended to encourage, facilitate, and stimulate economic development projects in the City of Pine Island. The funds originated from a combination of local, state, and federal programs, and each have different requirements for eligibility. The chart on the next page provides a brief summary of 3 of the EDA’s loan programs:
Microenterprise Development Loan Program Pine Island City-Wide Development Loan Program Pine Island Telephone Company Revolving Loan Program
Generally, funds loaned through the EDA are provided as “gap financing”, where conventional bank financing and owner equity are not able to provide all the funding needed. This typically occurs when the bank has lending limits they must adhere to, the owner(s) do not have adequate equity, the collateral is insufficient, or the business cannot afford market interest rates and/or term requirements.
EDA funds are meant to supplement private financing and are intended to assist, not compete with private lending agencies, in order that worthwhile business projects can be executed in Pine Island.