On January 6, 2004, the Gorham Town Council approved the creation of a Revolving Loan Fund Program designed to provide financing assistance to new and existing businesses in Gorham. It also appointed the Gorham Economic Development Corporation as the program administrator — overseeing applications, approvals, closing, and ongoing servicing of the loans.
Funding of the loan program has been continuous since inception and comes primarily from property tax revenue generated in specific Tax Increment Financing (“TIF”) Districts located in Gorham. Several businesses have already taken advantage of the loan program including Flaggship Landscaping and Seedlings to Sunflowers Daycare. There is more than $1,000,000 currently available to lend, and we are actively looking for applicants to get this money working in our community.
This program works slightly differently from your traditional bank loan, as it has a social component to its mission. Its purpose is to help meet the financing needs of small to medium sized businesses that create additional tax base and employment opportunities for our citizens. It is not meant to replace traditional sources of capital such as banks, but act as companion loans, filling gaps in financing needs.
Funds can be used for just about any legitimate business use, including buying and developing real estate, equipment purchases or working capital. There is no minimum loan amount but the maximum amount is $100,000 and the business can not have more than five million in annual sales. Interest rates are determined on a case by case basis but typically competitive with current bank rates. A complete list of program criteria and an application form can be found here.
Once an application has been received and deemed to meet eligibility, it is reviewed by the Revolving Loan Fund Committee. This committee is made up of seven Gorham residents appointed by the Town Council. Applicants are given the opportunity to make a presentation to explain their project to the committee during the review process.
If you are a small business owner and would like to learn more about this program, please contact the Gorham Economic Development Corporation at 854-5077 or gedc@gwi.net.