Function:

The purpose of the PACRO Entrepreneurial Development Loan Program is to finance business facilities and community development projects.  The program targets people associated with the Paducah Gaseous Diffusion Plant (PGDP), whether they are employees or family members of the United States Enrichment Corporation (USEC), subcontractors, or in some other capacity associated with PGDP.  The maximum PACRO Entrepreneurial Loan is generally $100,000.00.

Use of Proceeds:

Capital Assets, equipment, working capital

Payback Period:

Up to 20 years; 7 to 10 years for machinery and equipment; no more than 7 years for working capital; amortized monthly

Max. Loan Amt.:

$100,000.00

Interest Rate:

Tied to Prime Rate (to be determined at time of application)

Eligible Companies:

Start-Up or Expanding

The program provides technical assistance and funding opportunities for applicable small businesses and entrepreneurial start-up projects and may assist in financing a start-up or an expansion through a Business Discovery Loan and/or a "Gap" Revolving Loan and both loans have specific set-aside amounts targeted to PGDP employees and immediate family members.  It also provides assistance through financial counseling, workshops, and technical support services.

Other Relevant Services:

Customer Types:

Loans provided to restaurants, a specialty store, an advertising distribution company, an environmental clean-up companies, and almost any other business type. Exceptions apply; please contact Norma Pruitt (bizloans@purchaseadd.org) for more information.

Program Accomplishments:

• Established a Revolving Loan Fund of $402,718 in FY2000 available for entrepreneurial business activity
• Current Loan Portfolio has 4 loans totaling $336,500
• Overall Loan Portfolio has 8 loans totaling $585,775 which created/retained 147 jobs
• Total leverage of additional funds is $10,435,044, creating a leverage factor of 1 : 17.81