McLean County has had a Business Loan Program for a number of years now funded at a level of $600,000 annually. In the past it has not always been successful. That’s not to say that the county hasn’t been trying or has failed in its efforts. It’s more reflective of the challenge presented when trying to assist businesses in changing environments.
For example, Bloomington Normal Economic Development Council (BNEDC) CEO Patrick Hoban, whose organization is assisting McLean County with the program, said, “There was a Revolving Loan Fund.” Not a lot of people utilized the revolving loan fund because of the low interest loan,” Hoban said.”
Interest overall had dropped so low that even though the county was offering zero interest, with other government programs being offered businesses during Covid-19, the county program just wasn’t attractive to businesses.
Hoban stated, “During the pandemic they (the county) converted those (funds) over to forgivable loans to help about 19 businesses in the community stay open during the pandemic. All of them stayed open.”
“Now the pandemic is pretty much over,” Hoban said. “We are trying to convert those over to entrepreneurship programs. And with that what we are going to hopefully do next month is get a program approved that we will subsidize the rent to get some start up businesses into our vacant spaces around town.”
Given interest rates have gone up in the last two years, Hoban also hopes to restart the Revolving Loan Program.
McLean County Board member Chuck Erickson (R) said, “This has been an evolving program we had for four or five years. I mean I can’t remember, you’d have to go back and get it exactly, what it was initially. But eventually this program ended and this pot fell into this big pot for the county board to decide, ok, we can come up with our own incentive plan, alright?”
“Well then you had 20 people who were all, you know, entrepreneurial experts ok, and no one could ever figure out what to do,” Erickson continued.
Erickson went on “The way this actually started was I actually asked about six months ago to a year, I said why don’t you (BNEDC) just propose something to us instead of having 20 people propose something to you, ok? And tell us what you think will work so we can get this done.”
County Board member Val Laymon (D) added, “It seems like it is a shame to have money that could be used entrepreneurially.” “If we can incentivize folks and we can energize some folks in the business community who might not have had that opportunity to use commercial space or to even expand, I think it is an important conversation to have.”
Laymon said, “Some of the things that were kind of interesting to me is we’ve got options for potential new businesses to give folks some potential resources to be able to get their business off the ground but also for some existing businesses to be able to grow.”
According to Hoban there is retail, restaurant, and office space available and the best case scenario is to get home based business out of their houses and into some of the over 120 vacant spaces available in town.
Hoban made an informational presentation to the McLean County Finance Committee this week on his proposed new plan and will bring the matter back to the committee for action next month. In the interim board members will be providing input to the BNEDC. Anyone else wanting to provide comment to the BNEDC can do so here.
