MEDCO relaunching revolving loan fund

Small businesses needing gap financing for projects within the Marion city limits have a new resource in the community.

The MEDCO Revolving Loan Fund is designed for new or expanding businesses engaged in manufacturing or service industries (primarily non-retail businesses). Loans are available up to $25,000.

'We have viable business opportunities of all sizes that often need just a few dollars to close the gap between what our banks can provide and what is needed to turn a project into reality,” said Nick Glew, president of MEDCO.

Marion Economic Development Corp. (MEDCO) and the Marion Chamber of Commerce are relaunching the revolving loan fund in partnership with the East Central Iowa Council of Governments (ECICOG), which will provide administrative and underwriting support.

'We will do the initial screening,” Glew said. 'Once we feel comfortable with the application, we will run it through the formal process.

'ECICOG will handle all the loan documentation, much the same as a bank would do. It also will send out the invoices each month for repayment of the loan.”

Glew said the MEDCO fund has supported business activities in excess of $200,000 since its inception in 1990.

Separately, the city of Marion and Marion Chamber of Commerce Revolving Loan Fund was established to provide assistance to small businesses in retail, office, services, non-profit, and food markets. Both organizations contributed capital to the gap financing tool.

Fund administration also is provided by ECICOG.

Jill Ackerman, president of the Marion Chamber of Commerce, said in a news release that the loan funds are intended to increase employment opportunities, offer financial assistance that will promote the retention and expansion of existing business, increase the local property tax base, and diversify the community's economic composition.

Ackerman said the MEDCO Revolving Loan Fund is the first financing tool that specifically focuses on small businesses developing or expanding in Marion.

'We're confident it will aid small business development,” Ackerman said.