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BEDC approves Roscoe Bank partnership to administer revolving loan fund; BEDC to act as guarantor
Summary
The board approved Resolution R2025-1 to rename Roscoe Bank as the designated lender for a restructured BEDC revolving loan fund; the BEDC will market and guarantee loans while Roscoe Bank originates and services loans.
The Bastrop Economic Development Corporation approved a resolution designating Roscoe Bank to administer a restructured BEDC revolving loan fund program and established the BEDC as guarantor for referred loans.
Dory (BEDC staff) described the reorganization of the program, originally launched in February 2023, to position the BEDC as the primary marketer and guarantor while Roscoe Bank serves as the originator and loan servicer. The updated materials submitted to the board included a public facing program overview (guidelines and eligibility) and a referral agreement describing roles and procedures.
Representatives from Roscoe Bank (Michael Hancock and Johnny Sanders) were present. Board members asked about the guarantor role and loss exposure; legal and staff responses explained operational practice: the bank follows its collection processes and any unrecovered amounts would be a write‑off for the BEDC as the guarantor after the bank's collection efforts.
The resolution (R2025‑1) authorizes an agreement with Roscoe Bank to administer a revolving loan fund using donated funds from Roscoe Bank and BEDC funds in the amount of $30,000 per fiscal year. The board approved the resolution by motion.
Board members said the BEDC intended to open participation to other banks if they wish to serve in similar roles in the future. Follow‑up tasks include posting the program overview to the BEDC website and implementing the referral procedures in the agreement.
