The committee for Policy Development and Review for the City of Crookston met late Wednesday morning at City Hall. The committee is recommending that the Council applies for an additional loan from USDA, who supplies the funds for the gap financing the City provides to lenders beyond what the bank can do. Craig Hoiseth, CHEDA executive director and Angel Weasner, finance director, also asked if the City needed to raise their current rates to not be competing with the banks and committee members felt that wasn’t necessary, meaning the rate on City and CHEDA loans should remain in the 4.25 to 4.5 percent range for now.
“We had the year-end review showing the payments and balances of loans which have currently used all the funds we have so the committee is recommending council requests an additional loan from the USDA,” explained Weasner. “We wanted to make sure we aren’t competing with the banks, as we are gap financing only, so we work in coordination with the banks, not in competition. “
Two members are completing their second terms on the committee and are ineligible to be appointed for another term, so Mayor-elect Guy Martin will need to fill those positions after he is sworn in on January 7.
POLICY DEVELOPMENT COMMITTEE SUGGESTS APPLYING FOR USDA LOAN
