Laserfiche WebLink
59 <br /> <br /> Chairman Cecil said he did not have a Chairman's report to give <br /> at this time. <br /> <br /> Chairman Cecil said the next item on the agenda was <br /> consideration of and action on the request for assistance from <br /> the Northeast Texas Economic Development District for We Craft, <br /> Inc., for a loan in the amount of $31,833.00 for the purchase <br /> of machinery, equipment and working capital. Board members <br /> Barney Bray and Curtis Fendley requested they be excused due to <br /> conflict of interest. Chairman Cecil asked Mr. Fendley and Mr. <br /> Bray to leave the meeting. Chairman Cecil advised the Board <br /> that Mr. Bray and Mr. Fendley were in partnership with Mr. <br /> Harper, who is a principal of We Craft, Inc., and feel that it <br /> would affect their Judgment in this matter. After their <br /> departure, a motion was made by Mr. Amis, seconded by Mr. <br /> Williams to excuse Mr. Bray and Mr. Fendley from consideration <br /> of the matter of We Craft, Inc, due to a conflict of <br /> interest. The motion carried unanimously, 3 ayes and 0 nays. <br /> <br /> Chairman Cecil advised each of the board members they had <br /> received information concerning We Craft, Inc., and he asked <br /> Mr. Vest to review the proposal with the Board. Mr. Vest <br /> stated the request came from the Northeast Texas Economic <br /> Development District which is a federally funded organization <br /> that administers E.D.A. grants, loans, etc. He said We Craft, <br /> Inc., is asking for participation in their revolving loan fund <br /> program. <br /> <br /> Mr. Vest said the way the revolving loan fund program works is <br /> they ask the local community to provide 25% of the dollars for <br /> the revolving loan fund and the other 75% comes from the <br /> Economic Development Administration. He said as the note is <br /> repaid the Northeast Texas Economic Development District <br /> establishes a pool of money in a local institution and that <br /> money can be reloaned as it comes back in for other types of <br /> businesses qualifying for the revolving loan fund. He said the <br /> revolving loan fund has a maximum loan limit of $150,000.00 and <br /> We Craft, Inc., is asking for $127,333.00, and the 25% <br /> participation would be the $31,833.00 discussed in the <br /> document. He said the Northeast Texas Economic Development <br /> District administers all the paperwork, handles all loan <br /> collections, and servicing of the note. He said this note does <br /> require bank participation and the Northeast Texas Economic <br /> Development District takes the second position on all <br /> collateral, and the bank has the first lien position. <br /> <br /> Mr. Vest said the program is an excellent program, and he would <br /> like to see it established in Paris because it would benefit a <br /> number of businesses as the revolving loan fund increased. <br /> Chairman Cecil opened the matter for discussion by the board. <br /> Mr. Cecil wanted to know when that loan amount is repaid <br /> whether the Paris Economic Development Corporation would be <br /> able to take the money repaid from the loan and loan it to <br /> another party. Mr. Vest said the loan pool will be <br /> administered by the Northeast Texas Economic Development <br /> District, but the monies paid in from loans made in Paris can <br /> only be reloaned in the Paris area. Mr. Vest stated that the <br /> pool will continue to grow and the 25% is a contribution which <br /> never comes returns to the Paris Economic Development <br /> Corporation. He said this amount goes into a pool which will <br /> be reloaned. He said depending on how many loans the <br /> Corporation is willing to make, the pool in some communities <br /> has large amounts of money to loan businesses. Chairman Cecil <br /> wanted to know how to access the paid back funds. Mr. Vest <br /> <br /> <br />