RANTOUL — Two of three loan applications were recommended for approval by two village committees last week.
At Tuesday’s monthly meeting, the village board was scheduled to consider the recommendations to approve a $350,000 revolving loan to Vijay Patel to buy and improve the Maple Grove shopping plaza, and a $30,000 microloan to Jennifer Kitchen for purchase of Hap-E-Dog Bath Haus.
The microloan committee voted not to recommend approval of a $50,000 loan to Jorge Maltos, owner of Casa Fiesta in downtown Rantoul.
Maple Grove shopping plaza loan
Patel would pay 4 percent interest over 10 years with monthly payments of $3,544.
A total of $250,000 would be used toward the purchase of the shopping plaza, located from 1223 to 1291 East Grove Ave. The remaining $100,000 would be used to improve the interior and exterior of the property and to pave and restore the parking lot.
Patel said the funds would be used to “improve the overall condition and presentation of the shopping center, which will increase traffic and present itself better in town.” He said it would also provide an incentive for businesses to move into the empty spaces in the center and grow the overall economy.
Patel already owns the Vegas Place business, located in the shopping plaza.
Committee member Denny Long abstained from voting because Bank of Rantoul, with which he is affiliated, has a facility in the plaza. The committee said it was not necessary for member Jim Smith, who is affiliated with Busey Bank, to abstain.
The board unanimously approved recommendation of the loan to Jennifer Kitchen to purchase Hap-E-Dog Bath Haus. She will buy the business, located at 1712C E. Grove Ave., from Jan Hutchison. The purchase will include all of the business’ supplies and equipment and a 2007 Chevrolet HCR.
It is the only dog-grooming business in the Rantoul area and has been open since 2006.
She would pay 2 percent interest over five years with monthly payments of $525. Kitchen had requested $5,000 of the loan money to be used for day-to-day business operations. The loan approval recommendation, however, stipulates that $5,000 be placed in an escrow account and be made available only upon the presentation of “true business needs.”
Kitchen said she plans to be the sole employee of the business, plus perhaps other individuals who come in to help occasionally. The committee expressed concern whether Kitchen would be able to make ends meet if she had to be off work for an extended period.
Casa Fiesta loan
Maltos had requested the $50,000 loan to pay off the balance of the money he owes to Victor Torres — $30,000 — for the Casa Fiesta business located at 215 E. Sangamon Ave. The remaining $20,000 would have been spent to remodel the interior and expand and remodel the exterior, including adding seating.
The company employs three full time.
The committee, however, opted not to recommend approval of the loan request because of financial figures presented by Maltos.