Since its creation, the Gateway Mile Loan Fund in Elkhart, IN, has helped finance both interior and exterior renovations of downtown buildings, and allowed new businesses to open.
“What I think is unique about the program is that it is not funded by public dollars,” says Burt Troyer, who administers the fund. “This is all private dollars provided by local banks that wanted to be part of a program that would help improve downtown Elkhart.”
The program launched with more than $1.8 million available. To date, six businesses have received loans, while other applications are in the pipeline.
The loan program offers lower interest rates than traditional financing, and doesn’t require as large a down payment as would normally be required, Troyer says. “We try to make it a little easier for the loan applicant, as long as they have a good credit history, and the project makes sense and would show good cash flow on a regular basis.”
Getting the local banks involved was key to the program’s success and sustainability, Troyer adds. “It’s really about not being dependent on public funding.” And there are benefits for the banks. “One thing that does encourage banks to get involved is the Community Reinvestment Act. Participating in this loan fund is a good plug for CRA activity, and they can certainly get points with regulators by what we’ve done here,” says Troyer.
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