EDC to refinance small business loan; council not required to act
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Summary
The EDC reviewed and approved refinancing terms for a small merchant loan (net change ~$3,000) and discussed collateral and amortization; EDC staff will finalize contract details with Victoria and implement the repayment schedule; council indicated no action required.
GUNTER, Texas — The Economic Development Corporation told the joint meeting on Nov. 7 it had approved refinancing terms for an existing merchant loan that will extend repayment and add collateral protections.
EDC staff summarized that the action effectively refinanced and modestly adjusted the loan (a net change of roughly $3,000), added collateral terms and will produce an amortization schedule with the first scheduled payment in February. Staff said the merchant has good payment history and that contract paperwork will be prepared by Victoria for signatures.
Council involvement: EDC members moved and seconded the refinancing action internally; council members were updated but determined no formal council action was required for the EDC’s loan amendment.
Next steps: EDC staff will finalize collateral details, prepare the contract and provide the amortization schedule to the borrower. The EDC indicated account structure and bank arrangements for future program administration are being developed.