The Downtown Revolving Loan Committee met on December 16, 2011, and approved an extension of loan terms for the loan to Billie J. Ruff of Travel Café, Inc.  The loan was originally set to be amortized over 20 years with a balloon payment at ten years, due on December 1, 2011.  The extended loan terms will be for monthly payments of approximately $300 per month for 60 months with no balloon payment.  The interest rate starts at 5% but will be adjusted annually. The current loan balance is $15,828.68. The existing loan is current and has not been delinquent in the last 24 months.

Council may:

• Approve the loan extension terms; or
• Not approve loan extension terms. If Council does not approve the loan, the applicant will have to find financing at a bank which could delay principle payment.

Subsequent to approval of this loan extension, the loan fund will have an available balance of approximately $2,958,000.  This amount does not include loans of $600,000 that are approved but not issued.

The interest rate will be adjusted annually to the Prime Rate plus 1%.

The Downtown Revolving Loan Committee recommends that the City Ccouncil approve the loan extension terms for Billie J. Ruff of Travel Café, Inc.