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CDA authorizes two small‑business loans for downtown tenants; $50,000 loan plus $5,000 grant for JNM Davis, $25,000 loan for Asian Hut
Summary
The Community Development Authority approved a $50,000 loan with a $5,000 grant to JNM Davis Holdings LLC and authorized a second loan for Asian Hut LLC for up to $25,000 (program cap due to available funds). Both deals use personal guarantees and fixture/lease assignments as additional security; underwriting raised a past bankruptcy question for the Asian Hut applicant.
The Community Development Authority voted on July 10 to authorize two development and loan agreements intended to support new commercial tenants in a redevelopment building that houses Sizzling Hut and Hertopia.
JNM Davis Holdings LLC: Staff presented a $50,000 loan (the program maximum) paired with a $5,000 grant and a package of security documents including a personal guarantee and a collateral assignment of fixtures and lease. The package requires construction to start by Aug. 31 and a certificate of occupancy by Dec. 31. "It is a $50,000 loan, which is the max," staff said during the presentation; terms shown on the screen were a 7% interest rate and a five‑year term. The board moved, seconded and approved authorization for the executive director to execute the development and loan agreement.
Asian Hut LLC: A second applicant asked for $50,000 but staff noted program rules and available funds limited the CDA to a $25,000 loan. Underwriting performed by Hartland Credit Union flagged a Chapter 7 bankruptcy filed in 2018 and discharged in 2019. Staff reported the applicant has since provided a personal financial statement and the proposed loan structure mirrors the first transaction (personal guarantee plus fixture and lease assignment). Board members discussed program purpose—helping borrowers who cannot access traditional financing—and the acceptability of past bankruptcy history given its age and discharge. The board authorized the executive director to execute the agreement; members also discussed whether the $5,000 grant should be adjusted given the smaller loan amount and ultimately retained the $5,000 grant.
Votes at a glance
- JNM Davis Holdings LLC — Motion to authorize execution of the development and loan agreement (loan: $50,000; grant: $5,000; interest: 7%; term: five years). Motion carried. - Asian Hut LLC — Motion to authorize execution of the development and loan agreement (loan authorized: $25,000 due to fund limits; grant retained at $5,000). Motion carried.
Staff noted the loans carry underwriting risk and will include additional checkpoints before disbursement, such as detailed cost estimates and demonstration of funding to complete the projects.
