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Pulaski County commission recommends $50,000 loan to local business; one member abstains
Summary
After deliberation on loan sizing and fund preservation, the commission voted to recommend a $50,000 loan to be approved by the county commissioners; one member recused and abstained from the vote, and commissioners requested follow-up documentation from the regional development company on a balance-sheet item.
The Pulaski County Community Development Commission voted to recommend that the county commissioners approve a $50,000 loan to a local business seeking funds to complete building improvements at 108 South Bull Street and to buy exercise equipment for a fitness center.
The Chair summarized the request and the regional development company’s credit memo, noting a credit-score worksheet result of 2.85 and a proposed interest rate of 4.725% with a maximum seven-year term. "They’re seeking $50,000 to finish improvements to the building at 108 South Bull Street in Francisville and to purchase exercise equipment," the Chair said.
Commissioners expressed differing views on how much of the loan fund to allocate to a single borrower. One commissioner said the Beckers' request represented about 40% of the program fund and declared they would recuse themselves from the vote, stating they would be abstaining. That commissioner said on the record: "I'll be abstaining from the vote ... I just want that to be kind of on the record." (committee member)
Other members noted the applicants’ debt-service coverage and projected interest savings if the loan is refinanced into a conventional loan, and said that, with conditions and additional verification, recommending approval was reasonable. After discussion, a motion to recommend a $50,000 award to the county commissioners was made and carried by voice vote; the commission recorded unanimous 'aye' votes among participating members with one abstention.
The recommendation will be forwarded to the county commissioners for final approval; commissioners requested additional follow-up documentation from the regional development company on a balance-sheet item before the county-level decision.
