Mt. Vernon Register-News

Local

May 9, 2014

Second look for Revolving Loans

(Continued)

“Jobs must be retained or created based on the amount being borrowed,” Hollmann continued. “Fifty-one percent of the jobs have to meet the (Housing and Urban Development) low to moderate income requirements.”

At this time, they city has 12 Revolving Loans on the books, three of which are in default status:

n Rendezvous Bar and Grill borrowed $112,500 and still owes a total of $103,524 to the city, although the building has been taken by the bank. The city has second lien on the property to recover additional funds;

n Wingman Designs, which borrowed $30,600 and owes $28,121 to expand the business, however the business expansion did not take place; and

n Southtown Youth Programs, which borrowed $75,000 and is behind in payments. The total amount of the loan still owing the city is $36,748.

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