Green Bay committee approves $25,000 loan for Hollywood Nails and Spa
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Summary
The Green Bay Community Development Block Grant Revolving Loan Committee approved a $25,000 loan to Hollywood Nails and Spa of Wisconsin LLC to buy salon chairs and technician stations. The seven‑year loan carries a 4% interest rate and is secured by a UCC filing and personal guarantees from both partners.
A Green Bay loan committee approved a $25,000 loan on November 11 to Hollywood Nails and Spa of Wisconsin LLC to purchase salon furniture, fixtures and equipment.
City economic development specialist Jessica Mays told the Community Development Block Grant Revolving Loan Committee that the salon, at 807 South Military Avenue, has operated in Green Bay since 2002 and is requesting the loan to buy 14 spa chairs with advanced sanitation and 20 upgraded nail technician stations. The project’s total cost is $30,000; owner Dung Nguyen will contribute $13,000 in equity, Mays said.
The loan terms approved by the committee are a $25,000 principal amount, a seven‑year term and a 4% interest rate. The city will secure the loan with a UCC filing against the equipment and require personal guarantees from both partners of the LLC. Mays said the city’s process is reimbursement‑based: vendors are paid after receipts are submitted and staff verifies equipment on site.
Committee members questioned payroll and business structure after reviewing the applicant’s financial statements. The salon’s materials list 12 full‑time and two part‑time employees; when asked about classification and pay, owner Dung Nguyen said workers are W‑2 employees paid largely on commission (he described commission as about 60%). Staff acknowledged discrepancies between reported wages and the number of staff on the application and reviewed tax and profit‑and‑loss documents for 2023–24 and 2025 year‑to‑date. Mays explained the application omits 2022 tax returns because records were destroyed in a fire at the owner’s accountant’s office.
The committee also examined the applicant’s business entities. Staff reported that the active entity for this business is Hollywood Nails and Spa of Wisconsin LLC, created in June 2024, while an older formation dating to 2014 appears delinquent as of July 2024. A staff member said the city will ensure any legally bound parties sign loan documents before closing.
The committee voted by voice to approve the loan; the motion was made by the committee chair and seconded. No opposition was recorded.
The committee noted the borrower plans to use the funds within 30–60 days of approval and expects to add two full‑time positions after the improvements are completed. The loan will be enforced through the UCC filing and personal guarantees; if credit issues are discovered during final underwriting, staff said the matter would be brought back to the committee for further action.
