Sussex County isreplacing an underused business loan program, with a program that combines funds from the county and DiscoverBank.
County Council this week approved the creation of a new economic development loan program that will offer $4 million that businesses in targeted zones can use to grow their operations and create jobs.
The ExciteSussex Loan Program will be funded through two major sources, with Sussex County government contributing $750,000, and Discover Bank providing the balance of $3.25 million.
The $4 million in funds will be managed by the National Development Council and will be distributed in the form of low-interest, long-term loans to qualifying borrowers that are evaluated by the county and National Development Council.
Businesses must have at least 10 full-time employees, been in operation for at least two years, and can borrow up to $1 million under terms of the program.
Loans will be federally guaranteed, with rates as low as 3.94 percent based on current rates, with terms ranging from 10 to 25 years.
“This is an exciting opportunity for the County, its partners, and the business community,” said William F. Pfaff, county Economic Development director. “By having this fund, businesses will have a new tool and critical financing link to help them stretch their cash flow while saving thousands of dollars with lower monthly payments. Our hope is this encourages them to create and retain more jobs, which in turn helps the local economy. It’s a win for everyone in Sussex County.”
The program replaces a County initiative that had been underutilized in recent years. Funds set aside for the previous program will be used as the County’s $750,000 contribution to the new program, said County Finance Director Gina A. Jennings.
County officials are hopeful the new incentive package will attract more interest from the business community, and help spur growth in areas that have struggled in recent years because of corporate downsizing and the economic downtown, particularly central and western Sussex County.
As part of the program, the county has created three economic development zones – along the US 13 corridor (the Nanticoke Zone), as well two along the US 113 corridor from Ellendale southward (the Broadkill and Indian River zones).
“This is one of the finest examples of the public and private sectors working together for the betterment of our community,” County Council President Michael Vincent said. “Today, the County Council and Discover Bank have made a significant investment in Sussex County’s economy, one that we hope will ensure a brighter future for our local business community.”
Once the program is finalized, officials plan to launch it by late January 2018, Pfaff said.
For more information on the loan program and other incentive packages available in Sussex County, visit the County’s Economic Development website athttps://excitesussex.com/exceed/incentives/.