The Petersburg Economic Development Council’s Loan Collateral Guarantee Program is designed to assist local residents to obtain the necessary financing for purchasing, establishing, or expanding a small business. The primary goal of the program is job creation and economic diversification.
The Petersburg Economic Development Council (PEDC) and the City of Petersburg have set aside $150,000 from the Economic Development Fund to promote economic diversification and job creation through small business start-up and expansion.
The program helps individuals qualify for the bank financing they need by guaranteeing a portion of the collateral required for the loan.
For example, a local business owner wants to borrow $100,000 for a building renovation project, but lacks the $25,000 needed in collateral to meet the bank requirements for an otherwise sound loan. PEDC could step in, and guarantee up to 10% of the loan amount, or $10,000, to bridge the gap between what the bank requires and what the business owner can provide for the loan collateral.
Download a program brochure (95K PDF file), which includes program guidelines and an application checklist.
To get started, contact one of our local lending institutions First Bank, 772-4277 or Wells Fargo, 772-3833.