By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – If you want to see real economic development in progress, head over to the Fair Park area. And thanks to couple of loan programs, you ain't seen nothin' yet! I'm Maxine Shapiro with KERA Marketplace Midday.
I love Fair Park for all its history, architecture and splendid landscaping. Unfortunately, like a lot of South Dallas, the neighborhood surrounding Fair Park is a depressed community. But I see changes happening with each visit.
The newest program to enter the area is a federally funded franchise program. A $50,000 forgivable loan is given to any franchise moving into a 25-block area around Fair Park. When I first read about this program in the Dallas Business Journal, I was obviously intrigued by the term "forgivable." So I called the managing office of the South Dallas-Fair Park Trust Fund to get the skinny. Spokeswoman Kim Simms explained, when a franchise takes the $50,000 loan they must hire two full time low-to-moderate income persons. For every year the franchise keeps its doors open, 25% is forgiven. Stay open for four years - and there is no loan to repay. When I rhetorically questioned Dennis Ware manager of the program, "What franchise wouldn't accept those terms," he exclaimed, "Exactly - we're hoping they say the same thing."
But why only franchises? Ware then enlightened me on the South Dallas-Fair Park Trust Fund. City-funded, again a $50,000 loan is given to new businesses in the area with only 3% interest. No need to apply if you're a liquor store, motel, hotel, club or pawnshop. So far, 30 of those loans have been awarded. As for the franchise program, one - but what a success story. Leon Batie was laid off from Alcatel. He told the Business Journal he was glad. He now owns a Subway franchise by Fair Park. Last month, Subway gave it an award for having the highest weekly sales volume ever recorded in a 264-store region.
Two loan programs at work - successfully. I'm Maxine Shapiro with KERA Marketplace Midday.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.
Email Maxine Shapiro about this story.