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The Altoona Blair County Development Corp. could use an additional $1 million for the business development loan program that it's managing for the city -- on top of the $4 million in American Rescue Plan Act funding the city has already supplied.
"The initial amount is oversubscribed," ABCD CEO Steve McKnight said on Thursday.
"If you want to assign another million from ARPA, they'll take it," City Manager Omar Strohm told City Council earlier this week. "They feel they have a place for that investment."
ABCD has formally loaned $3.6 million for 12 projects, according to a list presented to council.
Two additional projects are "in the pipeline" for $700,000 more, according to the list.
The companies who have already borrowed from the program have "matched" their loans with a total of $48.5 million -- for a collective project investment of $52.2 million, according to the list.
The heavy interest in the program isn't surprising, McKnight said.
"It's reflective of where we are now," he said. "We're continuing to see a willingness to invest and to do building projects."
But there are signals the push might not last, according to Strohm.
"The big concern is with interest rates going up, and recession possibly at the doorstep," Strohm said. "Is there going to be a step-away from investment?"
The market is "volatile," McKnight said.
The Federal Reserve has been raising interest rates to reduce inflation by tamping down consumer demand, and that's not ideal, according to McKnight.
He'd prefer stimulus on the supply side -- clearing away supply chain obstacles, while incentivizing additional production to meet the current high demand, he said.
If there's a shortage of rolled steel for the production of certain goods that consumers are currently demanding, do something about the shortages, he said.
The current strategy is threatening "to kill a very strong" economy, McKnight said. "It's very frustrating," he added.
The program has loaned money to the following companies and individuals:
* $232,000 to Mountain Research for the purchase of an existing building, with a total cost of $465,000
* $225,000 to Levity Brewing for an expansion of its brewery/restaurant, with a total cost of $754,000
* $500,000 to A Better Address Altoona for construction of 12 market rate housing units, with a total cost of $1.5 million
* $181,000 to BLVD Suites for renovation of a commercial building, with a total cost of $362,000
* $500,000 to Graystone Grand Palazzo for construction of 190 residential units, with a total cost of $35.5 million
* $150,000 to John Hrivnak for purchase of the Bold restaurant, with a total cost of $515,000
* $500,000 to Pennsy Homes for construction of 17 residential units, with a total cost of $1.8 million
* $150,000 to Always a Party Rentals for the purchase of real estate and a business, with a total cost of $630,000
* $500,000 to Lou Ventura to renovate the former St. Mary's school into apartments, with a total cost of $1.8 million
* $500,000 to Graystone Grande Townhomes for creation of 24 market rate units, with a total cost of $8 million
* $34,000 to the Knights of Columbus for a roof on the group's downtown building, with a total cost of $68,000
* $150,000 to Alto Markets for renovation of the vacant former Citizens Bank building, with a total cost of $614,000
In the "pipeline":
* $500,000 for a project connected with the Kress building
* $200,000 for a project connected with Saleme Insurance.
Mirror Staff Writer William Kibler is at 814-949-7038.