The Downtown Revolving Loan Committee met on May 31, 2012, and gave conditional approval of a loan to Casey McGowan of the Trailhead Spirits.  The applicant met the conditions required by the Committee including the 20% equity. The loan may not exceed $100,000. 

Mr. McGowan will be renovating the building located at 2314 Montana Ave (formerly The Beanery) for use as a distillery, spirits tasting bar, and retail sales.  Mr. McGowan has secured a five year lease with a five year renewal option for the property.  The cost of the renovation and start up is estimated at $775,000, with the Downtown Revolving Loan Fund financing up to $100,000.  It was discussed that Mr. McGowan has $270,000 of personal investment, and secured a $500,000 SBA loan through Yellowstone Bank.  Mr. McGowan has also agreed to offer a personal guarantee for the loan.  The Downtown Revolving Loan Fund would be second to the Yellowstone Bank loan financing the remainder of the costs.  The loan will have a seven year term and amortization.

The Council may approve or not approve the loan recommendation.  Approval will allow Mr. McGowan to proceed with the project and disapproval means that completion of the project may be difficult and the building could remain vacant.

The loan fund will have a balance of $578,000 of loans payable to the banks after this loan and pending loans of $616,000 previously approved by the Council.

The Downtown Revolving Loan Fund Committee recommends Council approve the loan to the Bootleg Distillery, Inc., d/b/a Trailhead Spirits.