Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, August 31, 1995 TAG: 9508310057
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE: BLACKSBURG LENGTH: Medium
The recipients splitting the $105,000 in loans are:
Christiansburg Printing Co., a 20-year-old company that employs 15 and has seen its sales double in the past four years to more than $1 million. The company was presented with a $50,000 loan to pay for a collator, allowing documents to be produced more quickly;
Virginia Power Technologies, a five-employee firm located in Virginia Tech's Corporate Research Center. The company will use its $30,000 loan as working capital to complete a U.S. Air Force contract making power modules for aircraft;
Absolute Tool and Die Inc., a new Montgomery County business that will use its $25,000 loan to help with start-up costs. The two-person company was formed a month ago and produces designs, molds and machinery for use in the metal and plastics industries.
The announcement Wednesday that MBC, a community development corporation that serves as an alternative to such traditional lenders as banks, would make the loans came at the same time MBC announced that it had been awarded a $50,000 grant from Rural Economic and Community Development, formerly the Farmers Home Administration.
Just over a year ago, MBC president Raymond Smoot, and Don Moore, director of economic development for Montgomery County, made a similar announcement when MBC received a $30,000 grant of the same kind and presented $80,000 in loans.
So far, the 9-year-old corporation has made almost $400,000 in loans and grants to nine local companies and Montgomery County's shell building program.
The action "is what we in the economic development game are all about," Moore said Wednesday.
Glenn McMillion, MBC's treasurer, said the corporation looks for companies with growth potential that will provide more jobs as they prosper. "Little businesses turn into bigger businesses," he said.
Last year Smoot said he hoped that MBC eventually would have a million-dollar fund to work with; McMillion said Wednesday that's still an attainable goal.
"We look forward to getting a lot more banks to contribute," he said. MBC was funded initially with contributions of $63,000 each from the First National Bank of Christiansburg and the National Bank of Blacksburg.
He said the Rural Business Enterprise Grants help, although they cannot be counted on year after year.
Smoot said Thursday he had just learned that First Virginia Bank will be contributing a yet-to-be decided amount.
"You need to keep it going," McMillion said.
Memo: ***CORRECTION***