Wilmington's Grow Wilmington Fund issues $4.3M in loans to support small businesses

Wilmington's small business community is set to benefit from a significant financial initiative as the city continues to leverage its Grow Wilmington Fund. Established in 2014, this revolving loan fund, initiated by the UDAG Corporation, has attracted a total investment of $5 million, including a $1 million contribution from UDAG, alongside funds from Grow America Fund and Discover Bank.

Over the past two years, the Grow Wilmington Fund has issued eight loans totaling $4.287 million, resulting in the retention or creation of 78 jobs. Currently, there remains $481,773 available for new investments, although no new loans have been issued recently. This pause in lending is attributed to the availability of American Rescue Plan Act (ARPA) funds, which have led many businesses to opt for these alternative financing options.

Additionally, the emergence of the Grow Newcastle County Fund in 2023 has provided further support to Wilmington businesses, with $700,000 already committed to local enterprises. This new fund, similar in structure to the Grow Wilmington Fund, demonstrates a collaborative effort to enhance financial resources for small businesses in the area.

Wilmington Economic Development Corporation (WEDCO) has also played a role in supporting local businesses, administering five loans totaling $150,000. WEDCO's loans typically cater to smaller amounts, making them accessible to a broader range of businesses.

As Wilmington continues to navigate its financial landscape, the focus remains on ensuring that local businesses have access to the necessary funding to thrive and contribute to the community's economic growth. The ongoing collaboration between various funding sources highlights a commitment to fostering a robust small business environment in Wilmington.