Some tweaks to Pulaski County’s Revolving Loan Fund program were approved by the county commissioners last week. One of the big changes is the addition of new guidelines for when a business would have to get an appraisal to qualify for a loan, according to Community Development Commission Executive Director Nathan Origer.
“We’ll always require some sort of appraisal on personal property, just because it’s easier to move,” he explained. “Unless it’s a really high-end piece of manufacturing equipment, it’s probably not got a lot of value after depreciation that’s going to be much good for us.”
When it comes to real property, Origer said no appraisal will be required if the applicant wants to borrow no more than 50 percent of the property’s assessed value. “If it’s 50 percent to 75 percent, we won’t require a full appraisal, but we will require them to have a real estate agent do a market valuation,” he added. “And then if the amount they want to borrow is 75 percent or more of assessed value, then we’re going to require a full appraisal.” Origer noted there will be more room for negotiation, if the county does not have first lien position.
Most of the other changes to the Revolving Loan Fund were simply designed to bring the guidelines up-to-date with the current practice. “So essentially, the process will be they’ll apply, then depending on the amount, it’ll either go to the RDC or straight to the CDC, and then after the RDC to the CDC,” Origer told the commissioners. “We’ll do an executive session where we can interview the person as a full board – and typically, that will be the same evening right before the full meeting – and then in the regular meeting, we’ll make that conversation and discussion. And then, it would go to the attorney before coming to you.”
Origer said that for the most part, the program’s current borrowers are doing a good job at keeping up with their payments.