More can be done to help the economy

May 10, 2008 09:06 pm

— The Elkhart County Council has a problem every year when it comes to funding the economic development corporation. That problem can be permanently resolved if the council decides to create a line item in its general fund budget for economic development.
The council provides $100,000 annually to the Economic Development Corp. of Elkhart County. This is a vital agency doing important work to attract new industry and jobs to the county. A $100,000 investment is minuscule when one considers what an economic downturn will do to county revenue.

But councilmen are right in wondering if it is proper to use Tax Increment Finance funds to fund the agency. TIF districts are set up to fund redevelopment in specific areas for specific reasons. The EDC, however, takes a broad look at development. That’s why the County Council should consider a permanent funding fix for the agency now, instead of waiting until the next funding cycle comes around.
And while we are talking about the EDC and county government, let’s again mention our desire for the EDC and the Goshen Redevelopment Commission to create revolving loan programs. This type of loan program can initially be funded by grants and donations by the county and city councils. Then the money is loaned to start-up businesses or very small enterprises that want to expand their operations. The loans should have minimum interest — just enough to cover the cost of processing them and providing a small gain for the next round of loans.

The program can then be expanded with additional grant funds and from the small profit made. The funds are then loaned again to the next generation of expanding businesses.
Such a program would help locally-grown entrepreneurs expand their small businesses and thus create jobs and add to the county’s tax base.
If, as a community, we continue to put minimum effort in diversifying our economic base, we can only expect to become victims of future economic downturns that impact the recreational vehicle industry. The County Council should find permanent funds for the EDC and consider becoming even more active in economic development by helping to create a revolving loan fund.