By JAMES FINK
jfink@bizjournals.com | 716-541-1611

A business stimulus loan created by the Erie County Industrial Development Agency has been called a key financial lifeline for three firms.

And that's just the beginning, according to IDA officials.

Since the agency's Business Stimulus Loan Fund was created last fall at the urging of Erie County Executive Chris Collins, the IDA has granted $800,000 in loans and helped HEI Recycling Inc. and Advantage Industries - both of Buffalo - to expand and hire workers.

Also, TenEleven Group Inc. was  able to use the fund pool to move from West Seneca to larger office space in East Amherst.

The fund was created after Collins and IDA officials heard from small businesses that they were having difficulty getting working-capital loans from banks and other financial institutions. Companies are vetted before any loans are approved, said Al Culliton, ECIDA chief operating officer.

"Many companies in Erie County are having trouble finding financing, especially some of the smaller businesses that don't necessarily have household names," he said.

HEI Recycling on Dorothy Street was one of them. Through an outreach effort by the IDA, the company received a loan this spring that enabled it to purchase new equipment, hire seven employees and open the door to picking up new contracts from the likes of Catholic Health System, said Dennis Heuer Jr., company founder.

"It saved our business. We were at the point of throwing up our hands," he said.

HEI takes post-production plastic materials and recycles them for industrial use.

Collins said he pushed for the creation of the fund, based on feedback he was getting from residents and from his own experience operating and running more than 13 businesses.

"Growth needs working capital," Collins said. "There are existing companies out there that want to grow, but they need to get their hands on some working capital."