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PEDC Meeting <br />October 9, 2002 <br />Page 3 <br /> <br />Mr. Vest advised that he has talked with First Federal Community Bank, with <br />whom Mr. Parker does business, and First Federal has financed him in the <br />retail sector. Mr. Vest said he had spoken with people at First Federal and they <br />did not have a problem with doing business with Mr. Parker, but he has over <br />extended and they cannot, under their guidelines, loan him any more money <br />even though he is a good customer. Mr. Vest advised that he asked First <br />Federal if the PEDC gave a loan guarantee so they could finance him to <br />continue this operation. Mr. Vest said all the PEDC would be doing is securing <br />his note with First Federal so they will make the Loan. First Federal came back <br />and wanted a 100% guarantee. Mr. Vest said in order for Mr. Parker to get <br />started with this operation he would need about $40,000.00. <br /> <br />President Guest said he had been told that the City of Paris has $200,000.00 in <br />a cash account that has never been lent to any enterprise like this. Mr. Vest <br />advised that he sent Mr. Parker to see Tommy Haynes with the City of Paris, <br />and he met with Bob Jones. Mr. Jones rejected his request for a loan. <br /> <br />President Guest said it his understanding that the money is going to be pulled <br />by the USDA if the City does not do something, because they have not made <br />a loan. Director Fendley asked why the PEDC doesn't administer that grant. <br />Mr. Vest advised that this grant money has been contracted out to Mr. Bob <br />Jones, and Mr. Jones administers the fund for the city. Mr. Vest said there are <br />restrictions on it. It requires a bank participation like Mr. Parker is wanting for <br />the $40,000.00. The bank would put up $20,000.00 and the loan fund would <br />have to put up $20,000.00. <br /> <br />After discussion, it was the consensus of the Board to invite Mr. Haynes to <br />their next meeting and ask him to explain the USDA Grant and see if there is <br />a way the PEDC could work with Mr. Jones in this effort. <br /> <br /> <br />