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EDA debates raising revolving loan maximum as part of policy update
Summary
EDA members discussed changing the revolving loan fund maximum from $50,000 to a higher cap (options of $150,000–$200,000 were mentioned) to improve optics for business recruitment while weighing available liquidity and risk.
Members of the Pine City EDA discussed whether to change the stated maximum single‑loan amount in the Revolving Loan Fund policy. The existing policy sets a $50,000 maximum but allows exceptions on a case‑by‑case basis; board members argued that increasing the published cap to $150,000 or $200,000 could make Pine City more competitive when recruiting businesses.
Staff cautioned that available liquidity is limited: the board discussed roughly $270,000 in cash and CDs with about $87,000 immediately liquid. Members said any policy change should be accompanied by clear due‑diligence standards and a continued case‑by‑case review to manage risk.
Discussion highlights included whether listing a higher maximum might create undue expectations, how raising the cap interacts with the EDA’s strategic plan and capital‑building options (including adjusting the ad valorem rate), and the need to circulate a drafted policy revision for review and vote at a future meeting. The board asked staff to draft a revised RLF policy reflecting the new maximum and to return the draft for consideration next month.
