Loan Administration Board approves $86,000 brewery loan, backs $50,000 for Bedford Collab and grants three-month deferment for Barks and Rec

The Evansville City Loan Administration Board on Sept. 26 approved three financing actions: an $86,000 loan request from Barker Brewhouse, a $50,000 loan to Bedford Collab LLC from the City’s CRLF fund, and a three-month payment deferment for Barks and Rec.

Barker Brewhouse co-owner and head brewer Grant told the board the brewery opened in March 2023 and is seeking $86,000 to accelerate the second phase of a planned equipment expansion. "So we're here today requesting $86,000, to pull that second phase of the project up, in order to use our new equipment to its full capacity and, help us grow, and plan for the future," Grant said. He said earlier this year Old National provided about $99,500 for a brewhouse and fermenters and the business contributed roughly $35,000–$40,000 for accessories. Grant said brewery-produced beers account for about 40% of the taproom’s draft sales while representing only about 15% of draft offerings, yielding higher profit margins.

Board discussion addressed the loan’s security and disbursement method. A staff member said the board typically takes a security interest in equipment purchased with board loans and suggested structuring the $86,000 as a closed-end loan with draws: approve up to $86,000 and require the borrower to present invoices or purchase orders before each draw so the board can perfect security interests on the purchased equipment or note the lien on a certificate of title for titled property. The board approved the loan at an interest rate of 3.25% over an 84-month term, with draws subject to staff review and documentation. The motion passed.

The board next considered Bedford Collab LLC’s application for $50,000 from the Community Revolving Loan Fund (CRLF). Merrick, representing Bedford Collab, described a neighborhood revitalization project in the Teepee Park area that converted a 1919 building into a commercial kitchen and shared-food production space. Merrick said Impact Evansville, a 501(c)(3), owns the building outright and that Bedford Collab will lease the space from the nonprofit. He described a business model based on paying anchor tenants roughly $800 per month in rent while offering lower-cost memberships and a la carte options for other food entrepreneurs. Merrick said the organization expects to start with 10 foodpreneurs and scale to a maximum of 30.

Board members sought clarity on cash flow and tenant commitments. Merrick said anchor tenants have memoranda of understanding and that final lease agreements can be provided to staff. The board proposed conditions to protect the city’s interest: the loan be guaranteed by Impact Evansville, secured by the real estate, and subject to staff review of the anchor-tenant lease documents. The board approved a $50,000, 60-month CRLF loan at 0% interest on those conditions.

The board also dealt with a loan payment issue for Barks and Rec. Staff reported the borrower had missed payments and was not yet open in the leased space; board members discussed deferring payments until the business could begin operations. The board approved a three-month deferment and directed the borrower to appear at the October meeting.

Staff provided an update on the loan portfolio. Brian, a loan-fund staff member, said since the last meeting three smaller loans had been paid off (Feather Jones Kettering, Jody Salon and Tracy’s Attock). He also reported several loans in collections and noted there are a few accounts delinquent for more than a year; staff intend to contact delinquent borrowers, formalize delinquency letters, and present proposed policy changes and next steps at the next meeting. He said that available funds across programs include approximately $144,000 in the CRLF, about $92,000 in the EDA-22 fund and about $375,000 in the regular EDA fund.

Votes at a glance - Approve minutes from June 27, 2025: motion approved (recorded as in favor). - Barker Brewhouse: approve loan up to $86,000; 3.25% interest; 84-month term; draws subject to staff review and documentation; outcome: approved. - Barks and Rec: three-month payment deferment; outcome: approved. - Bedford Collab LLC: $50,000 CRLF loan, 0% interest, 60-month term; loan subject to guarantee by Impact Evansville, secured by the property, and contingent on staff review of anchor-tenant leases; outcome: approved.

The board adjourned after the portfolio update.