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No takers apply for $1.5 million in stimulus funds
Who wants $1.5 million? Apparently, no one.
Any Loudoun business could have received the money thanks to the stimulus package, the American Recovery and Reinvestment Act of 2009. The money was to be used for "recovery zone area" bonds for businesses that want to expand or improve their facilities in areas of the county that have been hit especially hard during the recession, according to Danny Davis, senior project manager at Loudoun County's administration office.
A recovery zone area is an area that is suffering from significant poverty or general distress and a high rate of home foreclosures and unemployment. Davis estimated that 80 percent of Loudoun qualifies as a recovery zone area.
"The purpose of the funds is to ... increase jobs or open up additional jobs, increase the business prosperity or enhance people's business opportunities," he said.
Despite this, Davis' inbox was devoid of any applications for the funds by the county administration office's deadline of Friday, Nov. 13.
The county administration office is now reaching out to companies that staff members think might benefit from it. If no takers are found within another month – by the county's deadline from the state – the money will be reallocated to other recovery zones, Davis said.
An initial round of stimulus aid benefited only government entities and nonprofits. When the bonds opened to the public, Loudoun administrators had mere weeks to get the notice out. Companies could have filed for the funds to purchase land, construction materials and equipment or even computers.
In turn, the money could have created or saved jobs.
So, why didn't anyone apply?
Davis guesses that maybe the requirements were asking for too much. Applicants had to outline a specific project for the use of the funds, and demonstrate how it would benefit the county by increasing jobs or reducing the general distress of the area and how it would stimulate the economy, he said. Applicants also had to prove they had financing in place from a certified lending institution. The bonds would provide a 2 percent savings on the bonds, following approval by the Loudoun Board of Supervisors.
Loudoun County Chamber President Tony Howard theorizes that there was simply a lack of knowledge about the aide.
"The businesses weren't aware that this opportunity existed," he said.
Additionally, the business community expresses "reluctance and concern" over the compliance requirements set forth by the stimulus bill, he said. If a project is not shovel-ready, then it may not be worth the effort to request the allocation.
"People are busier than they ever have been in this recession," Howard said.
Business owners are working harder than ever just to stay above water, he said. They don't have the time or resources to drop everything they're doing to compile an application for the funds.
This allocation of stimulus funding is meant for one company, but as the county looks for applicants, Davis said he would entertain partial requests for the funds.
Unfortunately, not many business owners have planned capital improvements because of the down economy, he said.
The county administration office must send the applications to Virginia by Dec. 15.
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