SOUTH BEND, Ind. (Inside INdiana Business) – The U.S. Economic Development Administration is awarding the city of South bend $7.7 million to administer a new Revolving Loan Fund for small businesses impacted by COVID-19. The city says the investment will assist the growth of the region’s economy, implement strategies to grow the region’s critical manufacturing sector and support workforce growth and development.
The award is part of $16 million overall awarded to cities in Indiana. South Bend’s award is the largest received by any city in the state and will be used to provide low-interest financing to help companies in South Bend start, maintain and expand their operations and facilities.
“This award from the EDA is a testament to the city’s success with the Industrial Revolving Loan Fund across many decades,” said Mayor James Mueller. “Given the difficult economic environment in the midst of the COVID-19 pandemic, this funding boost will help fuel our economic recovery.”
The city says it already operates its existing Industrial Revolving Fund which offers to finance to local businesses in manufacturing, service and commercial sectors.
The city says the IRF has granted 160 loans to local companies that helped create and retain more than 3,300 jobs since its inception. Over $47 million dollars have been directed to new and seasoned companies that found themselves unable to pursue traditional funding opportunities.
Within 60 days, the city says it will submit administrative plans for the fund to the EDA and then will receive disbursement of the funds. The new loan program will be administered by the Department of Community Investment.