Business loan

Cambridge adjusts its revolving commercial loan fund | New

In an effort to improve the city’s business retention and expansion efforts, Cambridge City Council changed its revolving loan fund to differentiate downtown revolving loan funds from manufacturing.

According to deputy city administrator Athanasia Lewis, there have been inquiries about sites in Cambridge and their willingness to buy a stake in a potential business loan to get that business to move to Cambridge. . However, with current guidelines limited, the city was unable to extend such an offer.

The city’s revolving loan fund was made possible by a grant the city received and then loaned for the sale of Cambridge Metal and Plastics in 2007. The interest on this grant loan, which was $ 114,315 , were retained by the city to be used at their discretion for other business incentives. The city still has about $ 66,000 remaining of that money.

According to city administrator Evan Vogel, the proposed changes would be of additional benefit to the city since direct participation in the loans would allow the city to be in a better financial position in the event of non-payment of the loan.

“In the event of a default, where we would generally take a significantly subordinate position (meaning the city would be a lower priority to get money back), we take a position that places us pro-rata with the other bigger notes,” Vogel explained. “So if we’re $ 50,000 of a $ 200,000 bill, we’re at 25%. If something were to go wrong, we would get a quarter of that amount that was collected through the default process. “

improved air conditioning library

Play Inc Arts, which rents a section in Cambridge’s new library, receives warm reviews, but not in a good way.

“We were told by Play Inc Arts that they were having heating issues this summer and that the space cooling was insufficient,” Vogel said.

According to Vogel, the current setup doesn’t allow for temperature control in their space, and because that space has multiple windows facing east, the space warmed up in the morning much faster than the rest of the library. Vogel said in speaking with Air Conditioning Associates, Inc, who originally installed air conditioning in the library, that they may add a new air conditioning system for that space that would allow the tenant to control the temperature of the unit.

“Looking at the rental agreement with Play Inc, I think it’s absolutely our responsibility to take care of this issue,” Vogel told the board.

According to CFO Caroline Moe, the money for this fix, which amounts to $ 9,957, would come from the $ 100,000 fund established by the city for necessary repairs to the library.

“It was one of the reasons we advocated for the creation of this fund,” Moe said. “Because invariably when we do a construction project, there is something wrong and we have to come back and do some repairs. This is a perfect example of why we should be doing this.

Moe added that the city is adding $ 5,000 per year to the fund to keep a balance large enough for future corrections.

As a side question, Council Member Mark Ziebarth asked why this fund was not used to pay for the new disabled parking space and the parking signage in the east parking lot.

Moe explained that the city’s policy is that capital expenditures must be greater than $ 5,000. “Since the library’s signaling issues were less than that, it is not appropriate to remove it from an investment fund. “