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Small businesses have opportunity with village Revolving Loan Fund

December 18, 2014
Editorial , Lake Placid News

The village of Lake Placid is looking for small business success stories in the coming year, as officials are now accepting applications for their Revolving Loan Fund.

Every year, the village considers new applicants for the Revolving Loan Fund from local businesses. The loan program was created to promote economic development, support local businesses and help job growth in Lake Placid. It started in the 1990s after Housing and Urban Development gave the village money to lend to the Mirror Lake Inn, after it was damaged by fire, and was subsequently converted into the Revolving Loan Fund.

The fund has a cash balance of $216,016 as of Sept. 30, according to the most current village report sent to the state.

Active loans between the period of October 2013 to September 2014 included Adirondack Clan LLC and Benita Holley, which run the local business The Market. They were loaned $79,875 on March 4, 2010 over a seven-year period at 3 percent interest.

National Sports Academy, a winter sports prep school, was loaned $200,000 last year and has a repayment plan over a five-year period with 5 percent interest. The loan specifies that NSA must retain "51 percent of its employees."

Despite financial problems, the school will remain open in the spring semester; however, it will be filing Chapter 11 bankruptcy under the U.S. code. NSA's loan is personally backed by two co-signers, including Brett West the school's board chairman, and the payments have been timely, according to village officials.

Other loans are in varying stages of the application process, according to the report.

Erica Burns' application stated an interest in potentially creating a new restaurant. The Sugar Shack Dessert Co. is also interested. And the Lake Placid Chocolatier, Blue Line Insurance, Cake Placid are also in some stage of the application process.

Jennifer Gates, owner of Cake Placid a bakery on Saranac Avenue, said she hopes the loan will give her the finances to build a stronger business. The bakery suffered extensive losses during a fire in 2013 and was forced to relocate.

"We're still recovering from the fire, as much as people think we've had millions of donations and this and that," she said. "We're still trying to build back."

Jim Murphy, executive director of the Adirondack Economic Development Corporation, said it's best to have a conversation with him before a business submits an application, because there are criteria in the loan a business needs to meet.

To apply, businesses should contact either the AEDC at 518-891-5523 or Lake Placid village Treasurer Peggy Mousaw.

A loan application packet is available through the Lake Placid website on the applications and forms page.

 
 

 

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