MONDAY JULY 12, 2021 |
The Bradenton Community Improvement Agency is expected to approve the Lost Loss Reserve Program to facilitate access to loans for business owners in certain areas.
“The primary goal of the Loan Loss Reserve Program is to provide current and potential business owners in CRA with access to cheap capital to pave the way for financial stability and wealth creation,” Katerina Gerakios-Siren said in a memo. Executive Director of CRA Bradenton Programs.
The CRA’s advisory board will meet at City Hall today at 1:00 pm to discuss the program, which will be led by the Financial Access Federal Credit Union. Bradenton has three redevelopment zones covering over 1,500 acres of the city. They each have their own trust funds and tax revenue sources, and each will provide up to $ 10,000 for the program this fiscal year and up to $ 30,000 the next.
The credit union will provide CRA loans to current or potential business owners for debt restructuring, refinancing car loans at high interest rates, and access to business loans at lower interest rates.
“This program will be used as a credit enhancement tool that will allow Financial Access to lend capital to business owners with limited credit and capacity who will benefit from below market interest rates,” Gerakios-Siren wrote. “These current / potential business owners will also have access to business assistance from the Small Business Development Center (SBDC) and comprehensive financial and credit literacy programs, including credit and financial advice, personal finance analysis, budgeting, credit rating tracking, and more. D. Free Financial Literacy Tools. “
If the loans fail, the credit union plans to transfer money from the established reserve fund to compensate for losses. The credit union plans to offer loans until the $ 5 million loan pool is depleted, after which it will use the $ 1 million available through the US Treasury Department.
Map Courtesy of the City of Bradenton