Efforts supporting businesses in Callaway County have been evident this year with increased activity from the Brick District - a group of Fulton business leaders promoting downtown businesses - and the start up of the Show Me Innovation Center - a nonprofit organization looking to nurture new county businesses.
Local economic activity is receiving a boost thanks to a program through the United States Department of Agriculture (USDA).
The USDA recently awarded the Fulton Area Development Corporation with approval for its Intermediary Relending Program, giving the FADC $750,000 to establish a revolving loan fund.
The FADC was one of 11 recipients nationwide included in the Intermediary Relending Fund Progam, loaning more than $7 million total, according to a USDA press release. More than 4,700 businesses have been awarded 281 IRP loans - totaling $140 million - since fiscal year 2009.
"USDA's Intermediary Relending Program helps capitalize loan funds to alleviate poverty and increase economic activity and create jobs in rural communities," the release states.
FADC Director Bruce Hackman said his organization has always wanted to create a revolving loan fund and this gives the FADC the opportunity to follow through with that plan.
The timing, he said, is also perfect with the revival of Fulton and the county's business community through the Brick District and Show Me Innovation Center.
"This will support the mission and vision of those organizations," he said. "Both are trying to foster business development, especially small business development."
The FADC board - comprised of 20 members, including representatives from the five Callaway financial institutions - will approve who will receive financing through the revolving loan fund.
"We have a lot of experience on the board to coordinate and oversee this type of program," Hackman said.
The FADC will essentially act as a bank, approving loans for those who can incur debt and prove they can pay back the loans. There will be a debt fund pool created to off set any bad loans. The FADC has 30 years to pay back the USDA loan with an annual payback at one percent.
"We have to be prudent in what we do - no different than a financial institution," Hackman said.
The board still needs to establish the interest rate, which Hackman said is likely to be lower than that of the banks. One percentage point, Hackman said, can be significant for businesses.
"It could make the difference on whether a project succeeds or fails," he said.
Part of FADC's responsibility is to attract large-scale businesses to the county - like it did in the mid-1990s with the Dollar General distribution center which created about 650 jobs. Because those opportunities can be challenging and competitive, Hackman said the revolving loan fund will aid in spurring new business or expanding current businesses, resulting in local jobs.
"(This will) support these types of small start ups, which can create jobs on a steady basis and create sustainable jobs," he said. "It's what rural communities are looking for."