FONDA — About $500,000 remains available in Montgomery County’s revolving loan fund for businesses following three loans approved this year.

The Montgomery County Community Development Fund, managed by the county Industrial Development Agency, had $2,009,000 in outstanding loans and $1,087,870 available at the end of 2007, according to the Montgomery County Industrial Development Agency’s 2007 annual report.

Three loans approved so far this year, totaling $525,000, leave roughly $560,000 for businesses to borrow in exchange for creating and maintaining positions.

The fund is owned by Montgomery County and administered by the IDA.

Montgomery County Economic Development Director Ken Rose, who serves as CEO of the county IDA, said the fund receives about $35,000 each month in payments.

“It’s a real steady growth. It’s better for everybody when we have loans out there because the fund grows quicker,” Rose said.

Businesses unable to obtain commercial loans to cover all the cost of expansion or equipment purchases are eligible to apply for loans through the county.

The loans often come with a lower interest rate than commercial loans, and they come with requirements that jobs be retained or created.

Rose said the county can lend up to $15,000 for every job created or retained through a project.

Five loans in 2007 totaling $975,000 are expected to create 49 jobs while keeping 207 people employed, according to the annual report.

A total of 11 businesses currently have outstanding loans and none of them are in default, Rose said.

The most recent loan to go into default was for Freedom Packaging, an Amsterdam package manufacturer that filed for bankruptcy protection in 2006. The company had borrowed $85,000 and Montgomery County filed a lawsuit to recover $60,000 for the fund.

There have been no developments related to the county getting its money back, Rose said.

“Sometimes these are higher risk loans,” Rose said.

Businesses have to try to leverage more equity or obtain commercial financing for their projects before qualifying for revolving loan funds, and those that can’t are considered at a higher risk of default.

“But we’ve been extremely successful recently with the loans,” Rose said.