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|Galesburg City Council Tables Loan for Start-Up Bookstore
|UPDATED: 10:01pm 6/1/09 A Galesburg alderman says he can't support a potential business owner getting a revolving loan from the city because he believes the business will fail, even though he said he hopes it succeeds.
The Galesburg City Council Monday night voted to table a proposed $15,000 revolving loan to former radio D.J. Ben Stomberg in support of his opening up a new and used book store on Seminary Street -- one he's calling "Stone Alley Books and Collectibles."
Even though Stomberg has been working with the Galesburg Entrepreneurship Center to develop a business plan and work towards the opening of the store, Third Ward Alderman Russell Fleming says he doesn't believe Stomberg's business plan will work. "From what I'm seeing from the numbers I'm looking at, you're going to be under-capitalized initially," Fleming told Stomberg, also known as "Ben Stone." "I'm willing to go along with this if a bank was also willing to go along with this, not a private individual."
"I don't see you succeeding, but I hope you do," Fleming said.
Stomberg was apparently going to try to get a bank loan for part of what he needed to start up, but instead opted to get private financing. Aldermen also had other concerns about whether or not Stomberg can actually afford all the month-to-month expenses.
Stomberg is also being awarded a $10,000 business innovation grant -- that's however, pending council approval of the revolving loan.
Aldermen, however, had no problem giving the owners of the Hawthorne Center Craft Mall a $19,000 revolving loan in support of their proposed expansion into another building and open up an antique mall.
|06 01 09 by Newsroom
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