Following a public hearing, the Barton County Commission Monday morning approved a $100,000 economic development revolving loan for INA Alert Inc., a business software and personal/business security firm located in Ellinwood.
“The company has been in operation for several years and has recently expanded with significant business in the growing security systems market,” said Bob Wetmore, executive co-director of Dodge City-based Great Plains Development Inc. Great Plains, which covers 28 southwest Kansas counties, administers the county’s revolving loan program.
“The business has dozens of new contracts for installation of new systems with businesses such as convenience store chains and school systems across the region but needs cash flow to purchase inventory and expand the business.” Loan proceeds will be used for equipment, furniture, fixtures, inventory and working capital, and will be of primary benefit to low and moderate income persons as five full-time equivalent jobs will be retained/created as a result.
The business is located at 112 N. Main St. It is owned by 19 partial investors but is managed by Monty Strecker, president, Nicklas Strecker, chief operating office and Jacob Strecker, chief marketing officer.
He stressed that no real estate or real estate improvements are involved.
The bank is taking a first lien. Barton County and Great Plains Development will have a shared second position. Monty, Nicklas and Jacob Strecker and Nels Lindberg are signing personal guarantees. No life insurance will be required.
The term and interest rate is five years at 6.50 percent. Interest-only payments shall be made for the first three months with the first principal and interest payment payable on the fourth month.
INA ALERT requested $100,000 from the Barton County. The total project is $400,000, with $200,000 already having been approved by Landmark National Bank branch in Great Bend and $100,000 already approved by Great Plains Development Inc. Tax Credit Revolving Loan Fund.
The Barton County/Great Bend CDBG-ED RLF loan review committee met on Feb. 15 and recommended approval.
To meet the program requirements, the applicant has already met the following Housing and Urban and Development guidelines:
• For a loan amount of $100,000, at least three full-time equivalent employees must be retained or created ($35,000 of loan funds per job). In this case, there are five jobs.
• The business has met the 51 percent low-to-moderate income requirement. In fact, the five jobs equal 60 percent.
• GPDI has completed the required Environmental Review and determined one was not needed. The form will be submitted to the Kansas Department of Commerce for approval.
On behalf of Barton County, GPDI will generate loan documents, close the loan, audit draw downs, issue monthly billing statements and begin regular loan servicing.
“I think it’s great to get an applicant to utilize these funds,” commission Chairwoman Alicia Straub said. There have been other applicants, but few have met the stringent requirements of the program.
“This will help grow our local area,” she said. There is a chance should the county not use the funds, the Kansas Department of Commerce could reclaim the money and end the EDRLF in Barton County.
The current balance of the Barton County CDBG/RLF before this loan is $213,229.60 and all loans are current.