Economic Advisory Board Approves New Loan Conditions

Effingham, IL / Effingham Radio
Economic Advisory Board Approves New Loan Conditions

New rules for the county’s revolving program were approved in committee on Tuesday. The program allows the county to loan out grant money for economic development. The new rules enforce harder penalties for borrowers who don’t make payments on time.

The rules include a flat $50 fee for every 15 days a payment is late, and a half a percent increase on interest after 90 days. The board would also have the option of foreclosing on any equipment purchased using county money.

“We’re going to be forced to actually put a little more teeth into the agreement,” Committee Chairman Dave Campbell said. The changes also gives the board more flexibility in working with borrowers to make sure they can afford payments. No changes will be finalized until they are examined by the State’s Attorney’s Office.

Committee member Jim Niemann proposed the changes and said his goal was to motivate borrowers to make payments. The loan program currently has around $40,000 available.

In other action the committee voted to cancel their subscription to eCivis, a grant management program. The rational being that there simply aren’t enough grants available for the county to justify using the program. Yearly subscription to the service was $800.

Dave Campbell discusses the new rules.

Download the free Effingham Radio app for music, news, contests and more!