Business and Entrepreneurship Development

Industrial park development, business clusters, revitalization, economic diversification, microenterprise support, lender tax credits, loan funds and infrastructure -- all these elements are needed to support business and entrepreneurial growth.

The Northeast Georgia Regional Development Center and county partners implemented a region-wide development vision when they launched the Four County Industrial Research Park project. This 2,200-acre industrial/ research park is located on a high growth interstate corridor east of Atlanta. Northeast Georgia RDC assisted in obtaining a state grant to determine the financing structure, intergovernmental agreements and creation of a joint development authority. Property has been purchased, and bonds have been secured to assist in startup funding. Infrastructure needs, such as water/wastewater, are now being assessed.

The Developing a Rural Cluster Strategy project, is a combined effort of the Illinois Institute for Rural Affairs at Western Illinois University and three southern Illinois regional development organizations in the Delta Regional Authority -- Greater Egypt Regional Planning and Development Commission, Southern Five Regional Planning Commission and Southeastern Illinois Regional Planning and Development Commission -- works with regional organizations, local developers, business leaders and others to evaluate and implement regional cluster development strategies. The project includes an econometric study of existing clusters, interdependency business evaluations and regional outreach including capital/business investment. Funding came from the EDA.

Southeast Iowa Regional Planning Commission administered the City of Fort Madison Reactivating Commercial Sectors project to assist the city elected officials and management with the reactivation of the city’s traditional commercial sectors. City officials provided $200,000 toward low interest loans to commercial and retail establishments with a maximum loan of $25,000. Each of the four local banks presented a $200,000 match to the city funds. Six loans have been made ($90,000) with investments of over $1,200,000, a 1:13 ratio. Eight loans have been made ($154,000) with investments of over $786,065, a 1:5 ratio.

The Buffalo Trace Area Development District and Bracken County’s Microenterprise Training and Loan Program is using CDBG funds and bank loans to assist low-income families in three counties with small business startups and expansions. The program will offer training and counseling services to entrepreneurs and make loans up to $7,500 for five years at two percent interest to microenterprises (five employees or less). Buffalo Trace ADD will administer the program. A county area Chamber of Commerce will provide training and counseling services.

The Green River Area Agriculture Diversification Program in Kentucky, administered by the Green River Area Development District, assists local agricultural producers in the seven-county region. The program strives to decrease farmer’s dependency on tobacco by offering resources for the expansion into diverse agriculture areas. Using state agriculture development funds and local producer matches, the program has already assisted 36 producers with expansion into various agriculture a reas, such as high-density apples, vineyards, blueberries, honey and goat herding for dairy and meat products.

The “Team Up for New Market Tax Credits” program was offered by the Minnesota-based Community Reinvestment Fund (CRF). Lenders nationwide participated in teleconferences in which CRF explained the advantages of teaming up for the credits instead of applying individually (fewer administrative burdens but similar program benefits.) The lenders were asked to detail the types of loans they would make and their communities’ needs. Fifty lenders from 32 states signed on and CRF won $162.5 million in tax credits.

Supporting a local catfish feed mill expansion and aiding job retention, prompted the South Delta Planning and Development District, Inc., to pursue the Sunflower County – INDIBEL, Inc. Economic Development Infrastructure Improvements project. Using CDBG funds, state infrastructure development funds and INDI-BEL, Inc’s. (the feed mill owner) investments, infrastructure will be constructed to serve the feed mill’s expected increase in corn feed usage. An access road will accommodate trucks servicing four new storage tanks and rail spurs will accommodate corn imports, due to the Mississippi Delta’s short window for corn harvesting.

The East Texas Rural Access Program Revolving Loan Fund program administered by the ArkTex Council of Governments and North East Texas Economic Development District seeks to provide much needed capital for the start of a revolving loan fund (RLF) for residents served by the East Texas Rural Access Program. The RLF program will also support efforts to expand rural access to primary health care and the local economic and employment opportunities associated with that primary health care. Funding Sources are: the Robert Wood Johnson Foundation and US Department of Agriculture.

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