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Winooski council awards $50,000 small-business loan after debate over fund balance
Summary
After extended questioning of the applicant’s finances and the loan program’s remaining balance, the Winooski City Council approved a $50,000 loan to an applicant doing business as Diamonds PLLC / Steinmetzville LLC and asked the finance commission to review the program.
The Winooski City Council voted to award a $50,000 small-business loan to an applicant identified in the record as Diamonds PLLC / Steinmetzville LLC after staff recommended and the council debated a lower award than the program maximum.
Councilors spent more than an hour questioning the applicants and reviewing staff and credit-union recommendations before the vote. City staff said the Winooski Small Business Loan Committee (staff-only at present) had scored the application above the program threshold and originally recommended the full $75,000 limit. Opportunities Credit Union reviewed the application and recommended against funding; staff and council discussed that difference in judgment at length.
The applicants told the council the project is roughly a $300,000 venture and that they were seeking about $200,000 from other lenders and agencies, including Community Capital Vermont and a Vermont economic development agency. Applicants said securing the city loan would unlock additional commitments from other lenders. They described a downtown showroom, interior-design services and a small brokerage aimed at helping New American and BIPOC families access housing, plus online retail and education work. The applicants acknowledged past tax filings issues are being cleared and said they are pursuing a payment plan as needed.
Council members raised two recurring concerns: the loan fund’s low remaining balance and whether the city should continue awarding large sums from a small revolving fund. One councilor noted after accounting for bank fees the loan fund had “less than $16,000” available for future awards. Several councilors said they wanted the finance commission to review the loan program’s structure and performance before approving additional large awards.
Councilor Thomas Renner moved to approve a $50,000 award; Councilor Charlie seconded. The motion carried (ayes: 3; no: 0; abstentions: 1). The council also voted to ask the finance commission to analyze the loan program and report back with recommendations.
The council directed staff to continue working with applicants and outside lenders. The city clerk and economic development staff confirmed the committee that scores applications remains staffed entirely by city staff pending recruitment of community members to the loan review committee.
The council’s decision leaves the revolving loan fund with limited cash on hand; councilors stated they want a finance-commission review to recommend whether the award sizes or the program structure should change before future large awards.
Applicants and staff were thanked and released after the vote; the council encouraged the applicants to pursue the other funding sources they described.
Ending: The council’s award was conditional on standard loan documentation and the applicant completing outstanding tax and accounting steps discussed during the meeting. The finance commission will review the program and return recommendations to council.
