Agency works to stir up business

The unemployment rate in Pasco County stubbornly has remained higher than 11 percent, nearly 3 percent above the national average.

In a bid to encourage small businesses to hire, the Pasco Economic Development Council has raised about $220,000 so far for a microloan program it is creating.

The new initiative could be up and running by late March, John Hagen, PEDC president and CEO, said last week during his quarterly report to the county commission.

The economic recovery could bloom in 2012, Hagen predicted, after several years of a recession that has dogged Pasco and the nation.

"Our goal has been to raise $250,000 to help Pasco County's new and early-stage small businesses expand and create jobs," Michael Cox, an associate vice president with Wells Fargo Advisors who is directing the initiative, said in a news release.

Wells Fargo Bank has donated $10,000 toward the microloan fund. Pasco County is ready to help with $100,000, while the PEDC already has committed $50,000.

The average loan for small firms here probably would range from $10,000 to $15,000, Cox added. The program will include training and free technical assistance.

"Each year small businesses begin and create some jobs but half of them fail within the first few years," Hagen said.

According to the Small Business Administration, the nation's 23 million small businesses create three-fourths of the nation's net new jobs and employ half of all private-sector workers.

"Two big reasons for small business failures are lack of money and limited business experience. Our program addresses both of these challenges," Hagen said.

Applicants must be for-profit companies in Pasco County. Borrowers must show they have the experience and resources to be successful business operators.

The loan proceeds may be used for working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but not to purchase real estate or to refinance existing debt.

Call PEDC at (813) 926-0827 for information or to consider a donation to the fund.