County considers helping with loan fund
MIDAS-run fund could help businesses make repairs, relocateBy JESSE HELLING, Messenger staff writer
A second Revolving Loan Fund for businesses could be established through the Mid-Iowa Development Association - provided that area counties ante up.
Cliff Weldon, executive director of MIDAS, asked the Webster County Board of Supervisors to provide $5,000 for the fund as part of the local matching funds required to receive a federal grant for the program.
In all, $250,000 could be available for loan to businesses planning relocations or expansions, Weldon said.
An existing Revolving Loan Fund contains about $278,000, of which 96 percent is loaned out, Weldon said.
''We never want to fund more than 15 percent of any project,'' Weldon said. ''At this point, our largest loans have been about $50,000 to $75,000.''
Businesses have up to 10 years to repay the loan through monthly payments, Weldon said.
Interest on the loans is generally about 1 to 2 percent below the prime rate, he said.
''Funds revolve through and then are available for the next businesses,'' said Weldon.
MIDAS was encouraged to apply for the Revolving Loan Fund grant due in part to recent flood damage, Weldon said.
Loans could be used by businesses to relocate or repair their facilities, he said.
Supervisors will discuss whether or not to provide the $5,000 during their Sept. 1 meeting.
In other business, the supervisors approved bids for two road construction projects in the county.
A bridge replacement on Hawkeye Avenue in Clay Township will be completed by Midwest Contracting LLC of Marshall, Minn., for $104,104.50.
The existing bridge failed during flooding earlier this year, said Webster County Engineer Randy Will.
The replacement bridge will be finished this fall, he said.
A roadway embankment repair project on 220th Street east of George Avenue will be completed by Peterson Contractors Inc. of Reinbeck for $147,958.
Contact Jesse Helling at (515) 573-2141 or jhelling@messengernews.net
