Resolution No. 32-2017 - Amended Industrial Revolving Fund Plan

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Ivy Tech Community College has embarked on a program to provide courses tied to the needs of local businesses. South Bend School City has started programs directed towards the needs of the private sector in such areas as advanced manufacturing as well as preparing students for advanced study in such areas as life sciences and medical technology. School City is placing increased emphasis on courses related to science, technology and mathematics. Information programs initiated by the City and the Chamber of Commerce on resources available to firms from government and other sources. A community - wide database of business resources is being developed for the City and surrounding communities. The database will be available to both new and existing businesses. Information about the IRF will be included in the database. C. FINANCING STRATEGY 1. Financing Needs and Opportunities 1.11ocal, existing companies needing to expand or retain their business. Most often the need is for fixed asset financing. 1.2.Start-up companies because they face difficulty in obtaining bank financing. Unless management is well seasoned and brings close to 30% or more equity to the table, it is unlikely a bank will fund the project 1.3.Companies exploring prospects to locate or consolidate their business in South Bend. These customers are generally creditworthy, but they have no established history with local lenders and vendors. The financing is also needed occasionally to retain a business that may move out of the community unless a financing is offered to compete with offers from other cities. However, such financing must be clearly consistent with the W strategic objectives and EDA regulations. 1.4.Retention financing is called for on occasion. Local subsidiaries of larger companies are sold or threatened with closing. New ownership is sometimes difficult for banks to finance. Projects are often highly leveraged. In many cases, a sale or closing is due to the local subsidiaries' poor economic performance, and a meaningful local transition can be difficult to finance. All retention financing will be consistent with EDA regulations and sufficient justification and consistency with the IRF objectives must be provided in the loan documentation. The IRF will help to create jobs and assist in business opportunities where current economic resources are not available. The IRF will serve as a catalyst and will fill gaps that the private or public sectors fail to address. The IRF, almost without exception, will partner with others in offering assistance. 9