A Sign of Unity for the Erie Community: Revolving Loan Fund Reinvestment

An exciting day for the Erie Community as Mayer Schember and City Council agreed to reinvest in its Revolving Loan Fund together. We look forward to the success that the fund will bring to the community.

Read the official statement below.

“Erie, PA – In another sign of unity and commitment to reinvesting in the City’s future, Mayor
Schember and City Council came together to reinvest in its Revolving Loan Fund. At the Aug. 16,
2023, City Council regular meeting, in a unanimous vote, Council transferred $5.36 million from
various unspent American Rescue Plan programs into its Revolving Loan Fund.

Erie City Council President Chuck Nelson sees a bright future for the City through this arrangement.

“With this investment, we are confident that we can continue the transformational change that is
occurring throughout the city,” said Nelson on Friday. “We are particularly excited that we were able
to approve a loan to VelocityNet for $1,360,660 that same evening for fiber optic internet service to
low- and moderate-income households in bayfront neighborhoods. This is exactly the type of
forward-thinking investment and use of the loan funds council likes to see.”

Mayor Joe Schember agrees.

“Capitalizing the Revolving Loan Fund is one of the best ways we can invest in our community,”
said Mayor Schember on Friday. “It allows us to see investment in the city. And as these loans are
paid back, reinvested again and again.”

According to Chris Groner, Vice President of Capital Finance & Lending for the Erie County
Redevelopment Authority (ECRDA), “Mayor Schember and City Council have been very supportive
of the loan program, investing $18.5 million since 2018. This continuous capitalization has allowed
us to maximize our impact on the community’s revitalization.”

The City of Erie’s Revolving Loan fund was established in 1990 through a Pennsylvania Enterprise
Loan Program grant. Since its inception, the fund has awarded approximately 250 loans for $50
million. The City Revolving Loan Fund is capitalized at $25 million and is managed by ECRDA as
part of its one-stop shop for public financing. The ECRDA loan portfolio currently sits in excess of
$55 million.”