ALAN KIM The Roanoke Times

New River Valley Competitiveness Center in Fairlawn helps new businesses get started by providing help with business plans, providing office space and access to conference rooms and office supplies.

After more than a month of strategizing and belt-tightening, the fate of the New River Valley Competitiveness Center remains uncertain.

In early May, the center's leadership asked its founding communities for backing to help get a $2.6 million refinancing loan.

Otherwise, center officials said they won't be able to pay the bills by the end of June.

Since then, several municipalities have agreed to help.

Christiansburg and Pulaski and Pulaski County have provided backing, called a moral obligation, for the loan. Christiansburg has promised $350,000, Pulaski has committed about $160,000 and Pulaski County has provided backing for up to $1.3 million.

But not everyone has committed their support. Blacksburg and Giles County decided against backing the center, and Montgomery and Floyd counties and the city of Radford have not made a final decision.

The Blacksburg Town Council made its decision during a May 5 work session. Some of the reasons discussed were concerns about the center's success and the fact that Blacksburg has its own incubation center.

Blacksburg Mayor Ron Rordam said in late May that while the council appreciates and admires the center's work, the council's consensus to not sign the agreement at this time.

The Giles County Board of Supervisors also unanimously voted against the measure.

According to the meeting's minutes, Supervisor Barbara Hobbs said although the board endorses projects there, it should keep its moral obligations within Giles County.

The center is located in Fairlawn.

The Radford City Council briefly discussed the agreement at a meeting in May but deferred action until its meeting on Monday.

The Floyd County Board of Supervisors discussed the refinancing at its April 14 and May 12 meetings but has taken no action.

The Montgomery County Board of Supervisors received the request but has not considered or voted on a resolution, said Ruth Richey, the county's public information director.

Originally, a May 25 date was tentatively set for commitments, but that date has been pushed back to mid- or possibly late June, said John White, Pulaski's director of economic development.

With that extra time, the center's board will approach the localities that have yet to vote or voted against the moral obligation to ask for a cash infusion, White said.

"We would like to get as much regional participation as possible," he said. "We continue to think it's an extraordinary asset for the New River Valley."

That planned $2.6 million refinancing comes from three loans -- $900,000 to rural development, $250,00 in construction loans and the remaining $1.5 million in loans for the building itself.

The refinancing is an attempt to wrap the loans into one payment and lower interest rates, White said.

"When you look at the profit-and-loss numbers, we look great and have a nice facility," he said. "The tougher part is making sure you can pay bills at the end of the month and, if you're making big loan payments every month, it makes cash flow tighter."

Between cash infusions for the upcoming year from localities -- plus moral obligations, the building itself and the 12 to 16 acres associated with the center -- White said he is optimistic the center will be able to secure the loan.

Even with current concerns, the center is still "a significant economic development program for the New River Valley," said David Rundgren, its executive director.

He points to the center's 55 successful businesses and more than 450 jobs created. In the center's 10-year history, eight of its businesses have closed.

"The center is a business like anything else," Rundgren said. "It's difficult to be in business, period."

The price of electricity, gas and other necessities keeps going up, but with tenant occupancy at about 57 percent, down from 73 percent in October, making ends meet has been difficult, Rundgren said.

If the loan doesn't go through, White said he still doesn't see the center closing. He said the center would approach other banks for refinancing if the current loan doesn't work out, along with seeking new tenants.

"There are too many good minds that are looking for solutions for this to fail," White said.