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Loan funds approved for Spring Valley’s Chateau de Chic


Fri, Jun 27th, 2014
Posted in Spring Valley Government

The Spring Valley City Council met on June 23 and approved an application for revolving loan funds for working capital for the Chateau de Chic in the amount of $25,000. The application stated that the business needs gap financing to pave the way for eventual purchase of the building it is located in now. “Purchase of the building will add stability to downtown, which has recently had two out of town owners vacate their buildings (law office and SV Mutual).”

The motion was made by Jeff Vehrenkamp and covers quarterly meetings with the small business counselor to review cash flow, to ensure that payroll procedures are being followed including that the applicant uses a professional payroll service, that the applicant is building the business’ working capital up to two months for cash flow, and that the inventory stays at acceptable levels as pledged for collateral to obtain the loan. The applicant is required to forward quarterly small business counselors’ report to the EDA director. The SBA monitoring is to be required until the applicant receives permanent financing on the building, at which time the EDA will require the applicant to provide the EDA with a second lien position on the applicant’s building at South Broadway.

When the EDA receives the second lien position on the building the EDA will release it’s lien on the applicant’s vehicle. The applicant is required to have insurance on the vehicle and name the EDA as a loss payee on the vehicle.

City Administrator Deb Zimmer reported that the planned painting on the Community Center has been delayed one week. She also thanked Bruce Kraut for the donation of sod to be used at the south park near the restrooms. Jayson Smith was also thanked for the donation of the sign (Men and Women).

Zimmer also stated that there will be a work session on Wednesday, July 16 at 5:30 p.m. with the Council meeting to follow.

Reports were given by the department heads. Jenny Simon was introduced as the new librarian.

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