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Red Bud council approves $50,000 microloan to NoJacks, hires water operator and awards small facade grant
Summary
In a special session, the Red Bud City Council approved a $50,000 microloan to a local restaurant, hired a new water and sewer operator at $41/hour, and approved a small facade grant. Council votes were unanimous and procedures will be formalized in ordinance paperwork.
The Red Bud City Council on Aug. 20 approved three items in a special meeting called after committee sessions: a $50,000 microloan to Herbie Inc., doing business as NoJacks South; the hiring of Joe Ledlow as a water and sewer operator; and a small facade grant.
Presiding officer (Mayor) put the microloan motion on the floor to grant a $50,000 loan over five years to Herbie Inc., d/b/a NoJacks South at an interest rate described in committee as 3% under prime (staff later cited a prime rate of 7.5%, yielding a computed borrower rate of 4.5%). The motion was moved and seconded and the presiding officer announced that the motion carried. No roll-call vote totals were recorded in the verbal transcript of the vote.
Applicant John (who said he goes by Anthony or “Tony”) told the committee the loan is intended for working capital, saying, “50,000 micro loan is essentially just for working capital,” and explained the restaurant encountered unexpected building and equipment costs during start-up. He said his other restaurant is debt-free and that the loan would offer a cushion as the business opens.
Council and staff confirmed that the ordinance/console motion will include the borrower’s LLC and personal-signature requirements. Staff also explained the mechanics of applying the stated interest convention to the current prime rate and that loan paperwork and the ordinance would reflect the details.
On personnel, the council voted to hire Joe Ledlow as a water and sewer operator at a starting pay of $41 per hour, effective with the 08/20/2025 payroll cycle. That action followed a personnel recommendation and was approved by motion and second.
The council also approved a facade grant after committee review. The transcript lists a project cost of “4,500” and shows the requested funds as “22.50” in the record; those dollar figures in the transcript were unclear and staff indicated the packet contains the complete grant paperwork.
The council closed by noting a subcommittee for the Illinois America 250 commemoration would place a bunting order to meet a vendor discount and then adjourned at 6:36 p.m. The council directed staff to prepare the formal ordinance language and paperwork to complete the loan and personnel actions.
What comes next: formal loan documents and the ordinance language will be prepared by staff and filed with the council records; the microloan requires standard loan paperwork (LLC naming and personal guarantee) before final disbursement. The hire and grant take effect per the motions recorded in the special meeting.
