Akron councilors adopt Revolving Loan Fund plan

Posted April 10, 2014 at 5:00 am

By Julie Ann Madden

Need some financial assistance to start a business in Akron?

Then get in line.

At their March 11 meeting, Akron councilors unanimously approved a resolution about several documents for their Revolving Loan Fund plan with United States Department of Agriculture (USDA) Rural Development grant.

The first project that will receive the city’s Revolving Loan Fund dollars is the construction of a spec building in the 100 block of Reed Street between The Akron Hometowner and Akron Jo’s Cafe. This loan will be awarded to the Akron Development Corporation in the amount of $211,000 with a zero percent interest rate.

Larson Design owner Alesia Larson plans to move her business to the new facility. Per her agreement with city officials, she will lease half the building and rent the other half out. At the end of 10 years of successful completion of the agreement, she will own the facility.

Proceeds from repayment of this loan will be used to finance other rural economic development projects.

These Revolving Loan Fund grants will have a loan serving fee not to exceed 1 percent per year on the outstanding principal, and future loans may have an interest rate not higher than the prevailing prime rate as published in The Wall Street Journal.

All projects if not managed by city officials’ Electric Department, will be approved by Rural Development, which will maintain decision making control and authority over all proceeds directly derived from this grant and all future earnings and repayments of loans.

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