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Green Bay committee approves $25,000 loan to Hollywood Nails and Spa of Wisconsin LLC
Summary
The Community Development Block Grant Revolving Loan Committee approved a $25,000, 7-year loan at 4% to Hollywood Nails and Spa of Wisconsin LLC for new salon equipment; the loan will be secured by a UCC filing on the equipment and personal guarantees from both partners, with disbursement by reimbursement after receipts and on-site verification.
On Nov. 11 the Green Bay Community Development Block Grant Revolving Loan Committee approved a $25,000 loan to Hollywood Nails and Spa of Wisconsin LLC to purchase salon furniture, fixtures and equipment.
Jessica Mays, a city loan program staffer, told the committee the project would purchase 14 new spa chairs with advanced sanitation and 20 upgraded nail technician stations. Mays said the total project cost is $30,000 and the owner is contributing $13,000 in equity. “Funds will be used within 30 to 60 days of approval with vendors already identified,” Mays said.
The committee discussed term length and underwriting details. The owner, identified in the record as Mr. Nguyen, confirmed the business has operated at the South Military Avenue address since 2002 and described business recovery after COVID. Mays noted that 2022 tax returns were unavailable because the owner’s accountant’s records were destroyed in a fire, and that staff had provided 2023–24 tax returns, a 2024 year-to-date profit-and-loss statement and credit documentation to support the application.
Committee members questioned payroll figures after the application listed 12 full-time employees. The owner said employees are paid via W‑2 and receive commission; on pay practices he said, “I signed a check. I paid for my employee.” The committee flagged an apparent mismatch between reported payroll totals and the claimed full-time headcount; staff did not change the recommendation but noted continuing diligence.
Staff described loan security and disbursement: the loan will be backed by a UCC filing against the equipment and personal guarantees from both partners, and funds will be reimbursed after receipts are submitted and staff verifies equipment on site. The committee proposed a seven-year amortization to align with equipment life; the owner agreed that seven years would work.
Committee Chair moved the loan on terms of $25,000, seven years, 4% interest, backed by UCC filings on the equipment and personal guarantees from both partners. The motion was seconded and approved by voice vote with no opposition, authorizing the loan.
Mays said staff will ensure closing documents identify all legally bound signers and that if a partner’s credit report raises concerns the matter will be returned to the committee for further review. The loan will be funded on a reimbursement basis after receipts and on-site verification.
The committee adjourned following the approval and offered congratulations to the borrower.
