Kalispell officials are asking the federal government to pump another $750,000 into the city’s increasingly popular revolving loan fund program.

Launched with earlier rural development grants from the U.S. Department of Agriculture, the program can loan money at low interest rates for eligible business expansion and job creation projects both inside Kalispell and within a 5-mile radius of the city.

Interest in the city’s program has picked up as the local economy has stabilized and started to recover.

The program made six loans totaling $296,000 in the last 14 months, leveraging $479,500 in participating bank financing and $57,000 in owner equity.

But it’s running out of money to lend and city officials hope to keep it available as a way to help spur private investment and redevelopment efforts.

With $629,689 already loaned out through the revolving loan fund program and as many as four more loan applications in the pipeline, Kalispell finds itself with only about $91,400 left to lend.

“It is anticipated that the city would have no funds available for relending in the event that even two of these applications were approved,” Community Development Manager Katharine Thompson said.

The Kalispell City Council voted 8-0 on Monday to pursue the funding, with council member Randy Kenyon not present. The request is due in June and if approved the funding would be available in September.

Like earlier grant awards for the revolving loan fund program, the federal money must be paid back with 1 percent interest over 30 years. That’s a consideration factored into interest rates the city charges.

“This would be a large injection to the revolving loan fund at a good time. I think our core area will start popping,” council member Jim Atkinson said about the request and the railroad corridor the city has targeted for revitalization.

Only two loans made by the revolving loan fund program are nonperforming and will need to be written off, Thompson said when asked by council member Tim Kluesner. They include a loan for $1,900 and a loan for $5,000.

Applications for the program are handled by a Revolving Loan Fund Committee the city has set up.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.