MONROE - The City of Monroe Revolving Loan Fund (RLF) began in 1989.
The Forward section of the city's original revolving loan fund policies and procedures document, obtained from the City Administrator Phil Rath, sets the scene:
"The City of Monroe applied to the State through the Wisconsin Development Fund (WDF) economic development program for a grant. The final approval was given by the Governor (Tommy Thompson) on November 2, 1989. This provided the initial revenue for the City of Monroe's Economic Development Revolving Loan Fund."
That original grant provided a $750,000 loan to Berghoff-Huber Brewing Company. The money was to be used for machinery, equipment and working capital. The principal and interest repaid by the company was used to establish the city's RLF. Three and a half years later, the RLF provided its first loan, with the Bank of Juda participating in the business endeavor, to Spring Creek, Inc., for $20,000. The 12-year loan with 5 percent interest was repaid in 12 months. A second loan was approved on the heels of the first, with Woodford State Bank and Amcore Bank participating, for $40,000, under the same terms. That loan was repaid in full in three and a half years.
The RLF made another loan for $40,000 under similar conditions in January 1994, before it stepped out on its own with a $300,000 direct loan to Roth Kase that same month. The second direct loan was made in 1996 to The Mitek Group for $100,000, a 7-year loan at 4 percent interest. That loan was repaid by October 2003. By August 2009, the Revolving Loan Fund had made loans to 37 businesses, distributing more than $3 million to businesses, and reaping about $585,000 in interest. Interest is returned to the fund for future loans. All loans made since 1996 have had bank participants. First Banking Center, which is now the First Michigan Bank; Wisconsin Community Bank; and Woodford State Bank have been the banks most frequently participating with the city's Revolving Loan Fund applicants. Only two of the 37 businesses granted loans have been declared in default. One loaned for $40,000 in 2005, the other was granted two loans totaling $50,000 in 2008. Both were declared in default by September 2010.
A recent application for a $50,000 direct loan is still pending. The loan to North Side Pub and Grill, unanimously approved by the three-member Revolving Loan Fund Committee Feb. 2, was sent back by the Common Council Feb. 16 for review by a soon-to-be larger committee. The action drew harsh criticism from some aldermen, who split the council vote, 4 to 4, forcing Mayor Bill Ross to break the tie.
If approved, the loan will be the first made from the fund since September 2008, and the first direct loan since 1996.
The Forward section of the city's original revolving loan fund policies and procedures document, obtained from the City Administrator Phil Rath, sets the scene:
"The City of Monroe applied to the State through the Wisconsin Development Fund (WDF) economic development program for a grant. The final approval was given by the Governor (Tommy Thompson) on November 2, 1989. This provided the initial revenue for the City of Monroe's Economic Development Revolving Loan Fund."
That original grant provided a $750,000 loan to Berghoff-Huber Brewing Company. The money was to be used for machinery, equipment and working capital. The principal and interest repaid by the company was used to establish the city's RLF. Three and a half years later, the RLF provided its first loan, with the Bank of Juda participating in the business endeavor, to Spring Creek, Inc., for $20,000. The 12-year loan with 5 percent interest was repaid in 12 months. A second loan was approved on the heels of the first, with Woodford State Bank and Amcore Bank participating, for $40,000, under the same terms. That loan was repaid in full in three and a half years.
The RLF made another loan for $40,000 under similar conditions in January 1994, before it stepped out on its own with a $300,000 direct loan to Roth Kase that same month. The second direct loan was made in 1996 to The Mitek Group for $100,000, a 7-year loan at 4 percent interest. That loan was repaid by October 2003. By August 2009, the Revolving Loan Fund had made loans to 37 businesses, distributing more than $3 million to businesses, and reaping about $585,000 in interest. Interest is returned to the fund for future loans. All loans made since 1996 have had bank participants. First Banking Center, which is now the First Michigan Bank; Wisconsin Community Bank; and Woodford State Bank have been the banks most frequently participating with the city's Revolving Loan Fund applicants. Only two of the 37 businesses granted loans have been declared in default. One loaned for $40,000 in 2005, the other was granted two loans totaling $50,000 in 2008. Both were declared in default by September 2010.
A recent application for a $50,000 direct loan is still pending. The loan to North Side Pub and Grill, unanimously approved by the three-member Revolving Loan Fund Committee Feb. 2, was sent back by the Common Council Feb. 16 for review by a soon-to-be larger committee. The action drew harsh criticism from some aldermen, who split the council vote, 4 to 4, forcing Mayor Bill Ross to break the tie.
If approved, the loan will be the first made from the fund since September 2008, and the first direct loan since 1996.