EDA approves $35,000 low‑interest loan for small‑engine repair shop

The Grayson County Economic Development Authority on a voice vote approved a $35,000 loan to a local small‑engine repair business, setting the interest rate at 1.5% and including a forgivable‑loan provision tied to ongoing operation.

The motion, made during the authority’s regular meeting, directed staff to update the loan forgiveness language as discussed by the board and authorized the chair to sign the finalized contract. The board and staff discussed collateral, term length and the conditions under which remaining principal could be forgiven.

According to the loan proposal, the funds would purchase inventory, displays and non‑serialized equipment; serialized equipment would be covered separately. The contract requires that the repair shop operate for a defined period — the draft contains a forgiveness trigger measured after 48 months of continuous operation, though board members discussed clarifying language and consistency with related sections that previously referenced 72 months. The agreement includes a security interest in the repair shop’s assets and improvements as collateral.

The business owner described business activity since opening and said the proceeds would cover initial inventory and setup; he said the shop has one full‑time employee and projected near‑term reopenings and orders. Board members asked about collateral and repayment terms and said the forgiveness clause gives the authority discretion to forgive all or part of the remaining balance if the business meets performance expectations.

The motion approved: a $35,000 Economic Development Authority loan at 1.5% interest, with updated forgiveness terms as noted by the board and authorization for the chair to sign the completed contract.

Ending: Staff said they will finalize the updated contract language and return the document for the chair’s signature once edits are complete.