Akron Mayor Don Plusquellic, at his weekly
news conference today, announced the creation of the Akron Initiative, a
partnership with four Akron area banks, City of Akron, and the U. S. Small Business
Administration (SBA). The Akron Initiative combines SBA loan guarantees and the SBA
HUBZone Program with additional resources offered by the City of Akron, creating unique
growth opportunities for businesses in Akron. The Akron Initiative is designed
to provide greater access to SBA program capital for entrepreneurs and business persons
who want to start, grow or maintain a business. This is an innovative approach by the City
to provide service and benefits to small business and to create and keep small businesses
in Akron.
Mayor Don Plusquellic said this morning, "This joint effort with the SBA, our
banks and the City of Akron will now provide Akron small businesses with the opportunity
to access working capital funds previously not available to many businesses. Working
capital funds are the most important for small business success. For the first time, Akron
small businesses will have legal, financial, accounting and other valuable support
services available at affordable prices."
Based on need, the initiative will provide qualifying businesses with a combination of
some or all of the following:
- Borrowing at prime rate
- A grant of 15% of the project costs---not to exceed $60,000---from the City of Akron.
The grant conditions require the borrower remain in business for five years to receive the
entire grant benefit. A portion is forgiven each of the five years
- 75% tax abatement on inventory plus machinery and equipment
- Technical assistance grants of up to $5,000 per borrower for: legal, marketing,
accounting assistance or other operation support
- Grants to pay for city permit fees
- Business assistance grants up to $20,000 per borrower for such items as environmental
studies, façade grants and demolition grants
The four participating banks, KeyBank, Bank One, National City and First Merit Bank
will make loans at prime. A spokesperson representing all of the banks commented, saying,
"We believe this joint approach with the SBA and the City of Akron will pave the way
for growth and success for many Akron small businesses that would otherwise be stagnant or
fail."
"This partnership creates a unique and exciting opportunity which will enable
entrepreneurs in Akron to start, grow, and or relocate their businesses to Akron. It
leverages our resources with those of the city and the banking community in a way that
will create jobs and wealth here in Akron. It is our hope that this initiative will make
Akron a showcase of economic development for other cities to emulate," said Gil
Goldberg, SBA’s District Director of the Cleveland District Office.
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