The changes are still considered preliminary, but discussions are taking place at the Pulaski County Community Development Commission to move risk-analysis and loan recommendations to Valparaiso-based “Regional Development Company.”
PCCDC Executive Director Nathan Origer says this allows specialization to take place.
“So it’ll still end up in the same place with the final decision in the hands of the commissioners, but we won’t have to corral bankers and we’ll be able to focus solely, locally on the benefit to the community while relying on expert opinions on the financial risk of the project,” says Origer.
Several issues have cropped-up with the revolving loan fund, including: properly collateralizing the fund, and finding expert banking opinions to analyze loans which don’t have previous working relationships with the company applying for funds.
Later this week, Origer will meet with a Pulaski County attorney to review a contract proposal between the two entities.
Origer says that although the funds’ capitalization is low, there’s a promotional aspect to the changes being considered.
“I haven’t had anyone terribly, seriously interested in the program in the last few a months, but I’ve had a few nibbles and I want to be able to get out there and say this program is live again,” says Origer.
The changes are expected to raise the costs to the county; albeit slightly, but will likely be passed onto the borrower.
Assuming no major issues in the contract proposal, Origer anticipates presenting the agreement to the Pulaski County Commissioners for final approval next week.