EAST PROVIDENCE — The City Council at its July 18 meeting voted to increase the city’s Urban Development Action Grant (UDAG) Revolving Loan Fund by $500,000 to support new businesses moving into East Providence.

The increase comes from the revenues from the sale of housing lots at the site of the former Platt-Watters School and will be overseen by the East Providence Economic Development Commission.

The administration of Mayor Bob DaSilva requested the Council allocate the funds from the sale of eight, city-owned parcels located on Burnside and Hoppin Avenues to the UDAG fund to support existing businesses seeking to grow and new businesses interested in calling East Providence home.

East Providence, over the last four years and through the Economic Development Commission, has issued loans from the fund to a total of 23 small businesses totaling $783,000.

This revolving loan fund helps local business owners by providing businesses with the necessary startup capital to funds to expand in East Providence.

Beginning in the late 1980’s and supported with initial funding of $800,000 from the U.S. Department of Housing and Urban Development’s UDAG program, the city has leveraged this grant to assist small businesses expand and grow with a revolving fund.

The UDAG provides development funds to states to assist physically and economically distressed cities and urban counties. A review was made of the administration of this program by the Department of Housing and Urban Development, addressing the amount of private investment stimulated, the number of permanent jobs created or retained, and the degree to which the grantees' tax bases were expanded.

Leverage occurs when the UDAG investment generates a greater amount of private investment, and, therefore, economic growth. Analysis of the levered private investment should take into account all public funds that are in evidence and applicable to the project.