Revolving Loan Fund Board

Economic Development Revolving Loan Fund Board January 8, 2020 PUBLIC MEETING BOARD MEMBERS STAFF MEMBERS 9:00 a.m. Aaron Reger, First Merchants Karen Soetenga, RLF Staff Via Zoom Conferencing Trent Dowling, Star Financial Mike Austin, RLF Attorney Adam Hoeksema, Bankable Greg Winkler, Economic Development Doug Whitham, Controller’s office OTHERS PRESENT Rob Sparks, CED David Eicks, City of Anderson Darren Grile, City of Anderson Ben Orcutt, RLF Applicant CALL MEETING TO ORDER A quorum was established. Ms. Soetenga stated an executive meeting was held prior to the public meeting to discuss financials in the Board’s portfolio. Item #1: Minutes Ms. Soetenga called for a motion to accept the meeting minutes for December 16, 2020. Mr. Winkler made a motion to accept December 16, 2020 minutes as presented and Mr. Dowling seconded. Motion passed unanimously. Item #2: New Loan Application (Bankable) Ms. Soetenga, RLF Staff, stated a new loan application had been received for Eleventh Street Industries, LLC, DBA Buckskin Bikes. Mr. Hoeksema, Bankable, briefed Board members on $100,000 loan request for the rehabilitation of a newly purchased building, 915 Madison Avenue. Applicant will be moving the bike repair and retail store, now located at 517 W. 11th Street, to the new facility. Bankable will be participating with an additional $50,000. Mr. Hoeksema introduced Ben Orcutt, owner. Mr. Reger asked Mr. Orcutt how much he personally was investing. Mr. Orcutt stated $80-100,000. Mr. Winkler asked him to speak to the current anticipated growth of the business. Mr. Orcutt stated there has been an increase in demand for both retail and repair due to the pandemic and he anticipates it will only continue to increase. Brief discussion followed. Ms. Soetenga asked about anticipated job growth. Mr. Orcutt stated he would be adding three new positions out of the gate with an additional 7+ within a couple years. Brief discussion followed. Mr. Whitman made a motion to approve a loan of $100,000 ballooning every two years at an interest rate of 75% of prime with an amortization of six years and if deemed allowable by the Economic Development Administration, for ten years; security will include the real estate at 915 Madison Avenue and a UCC on business assets including equipment and inventory as well as a personal guarantee. Motion is subject to the property at 915 Madison Avenue being transferred into Mr. Orcutt’s name. Mr. Reger seconded. Motion passed unanimously with Mr. Hoeksema abstaining. MISCELLANEOUS Meeting was adjourned at 9:20am. Minutes submitted by Karen Soetenga