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EDA approves $60,000 loan to Philip diesel repair with conditions
Summary
The Economic Development Authority approved a $60,000 loan to Philip diesel repair at 3% over 15 years, contingent on two years of profit-and-loss projections demonstrating a debt coverage ratio of at least 1.2; the board directed funding from Fund 41 because USDA funds are currently inaccessible.
The Economic Development Authority approved a $60,000 business loan to Philip diesel repair after staff presented the application and the board voted in favor.
Staff described the request as a $60,000 loan at 3% interest over 15 years to fund a building addition; the total project cost was estimated at about $80,000 and staff said the business’s building is currently valued at roughly $350,000. "The EDA received an application from Philip diesel repair. Um they are looking for $60,000 at 3% interest rate over 15 years to fund their building addition," a staff member told the board.
The board discussed scope and impact, including that the addition would enlarge workspace on the east side to accommodate future services such as tractor tires, and that the project is expected to support roughly one full-time job. Committee review on Sept. 29 recommended approval on the terms presented, contingent on receipt of two years of profit-and-loss projections demonstrating term debt coverage ratios of at least 1.2; staff reported those projections were provided and met the 1.2 threshold for both years.
Because a USDA account (Fund 44) is not accessible during the federal government shutdown, staff recommended the loan be funded from Fund 41; staff also said the EDA program fund report indicates sufficient funds to cover the loan. The board approved the recommendation by voice vote; the motion carried.
The board did not name the mover or seconder in the public record and there was no recorded roll-call tally in the transcript. Staff noted the loan approval is contingent on the documentation requirement; no additional flags were reported.
