RLF board OKs one, rejects another loan request
Jun. 27—The city of Kokomo's Revolving Loan Fund Board approved a loan request and rejected another as it tries to dole out the rest of its CARES Act money before it loses it for good.
The board Thursday approved an application request from Tara Galles, owner of You're In CONTROL, for a five-year $50,000 loan at 2.6% interest rate, with $35,000 of that going toward salaries and the other $15,000 to benefits and supplies. The loan still needs approval from the Kokomo Board of Public Works and Safety.
You're In CONTROL, located at 2314 Valentine Drive, is locally owned and provides occupational therapy, physical therapy and personal training to mostly women. Galles opened the clinic in 2019 after seeing there was a local demand for pelvic floor therapy and women's health in general.
"We are able to provide one-to-one care in a private setting," Galles said. "I don't think patients should be on display, and so I'm able to allocate one therapist to each patient visit."
Galles told the board the business has seen an increase in demand since the COVID-19 pandemic and since being named an honoree in Heartland Magazine's annual "Women in Business" edition. As such, the company has seen more demand than it can currently meet.
The loan will help pay for more employees, including a full-time clinician, so the company can knock down its current eight week long waiting list.
The RLF board just needed a few minutes to give its approval to Galles' loan request. Board members highlighted Galles' excellent credit score and reliable business income as reasons for their approval.
"I think it's a great example of what this program is for," Lori Dukes, RLF board member, said. "I really appreciate a local business facilitating local needs."
Treasure Mart
Also Thursday, the RLF board rejected a request for a five-year $160,000 loan at a 2.6% interest rate by Jeff Augustine, owner of The Original Treasure Mart.
Augustine was seeking the money to expand the business, including hiring additional employees so the business could stay open until 8 p.m. on most days to generate more income, expanding the store's annual garden party by moving it outside, building repairs and buying more of its own inventory and selling it on the building's third floor.
What gave the RLF board members pause, however, is the business' bookkeeping issues in the last few years, which has resulted in an unknown amount of unpaid payroll and sales taxes.
Admittedly, Augustine said the business got burned by its past two bookkeepers — one that was "forgetful" and another that was downright bad. Now, he said, the company has two on the job to figure out the issues.
"They're trying to figure this all out to see exactly where we do stand and how much we owe," Augustine said.
Also giving RLF board members pause were two loans with interest rates at 15% the business had to take out after the pandemic and the businesses' inability to pay its property taxes on time, bringing into question if Augustine could afford the extra $2,800 a month payment he would have if approved for the $160,000 loan.
TRYING TO BEAT DEADLINE
The RLF board's decisions Thursday come a few weeks after it decided to expand the types of business eligible for the city's CARES Act Recovery Assistance Revolving Loan Fund.
Previously, only businesses in the manufacturing and technology industries were eligible, but now virtually every type of small- to medium-sized private business in Howard County seeking to retain or expand its employee base and was affected in some way by the COVID-19 pandemic is eligible.
Thursday's loan to Galles was the second loan the board has approved since receiving $660,000 through the pandemic relief program. The city lost 25%, or $165,000, because it did not loan out at least 75% of its allocated funds by April; it has until July 27 to loan out the remaining funds or it will lose the money.
Tyler Juranovich can be reached at 765-454-8577, by email at tyler.juranovich@kokomotribune.com or on Twitter at @tylerjuranovich.
