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Montgomery board weighs changing MDF rules after business requests $20,000 forgivable loan
Summary
Staff reviewed the Montgomery Development Fund and a completed $53,000 project by Georgia's Family Dining seeking a $20,000 forgivable loan; current guidelines cap forgivable loans at $10,000 and prohibit reimbursement for work completed before approval, prompting a discussion of guideline amendments and a staff follow-up to return revised language to the board.
Director Abt reviewed the Montgomery Development Fund (MDF) programs and told trustees that Georgia's Family Dining applied this summer for a $20,000 forgivable loan to cover siding, fascia, gutters and new awnings for an approximately $53,000 project completed in August 2024.
"Currently, our approved program guidelines for the forgivable loan program have a maximum forgivable loan of $10,000 and additionally, the guidelines state that the funds cannot be used to reimburse expenditures made before village approval," Director Abt said, adding the MDF committee recommended approval of the full $20,000 to support a long-standing local business.
Village counsel and staff told the board the village could either treat the request as two $10,000 applications (no guideline change required) or amend the forgivable-loan guidelines to allow board discretion to approve up to $20,000 when a project furthers a strategic goal or benefits village development. Another option discussed was allowing reimbursement for projects completed within six months prior to board approval.
Trustees asked questions about fund balance and prior usage. Staff said the MDF has "in excess of a million dollars" available and that the village used forgivable loans during COVID; since then, applications have been limited. Several trustees said rising costs make a $20,000 maximum more appropriate than $10,000 and expressed support for adding board-discretion language and a six-month reimbursement window where appropriate.
Staff will bring Georgia's Family Dining’s application and proposed guideline amendments back to the board for formal consideration at a future meeting.
