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|City Council Approves Revoling Loan for Bookstore
|POSTED 9:20pm 6/15/09, UPDATED 8:39am 6/16/09 The majority of the Galesburg City Council is mostly satisfied with the information it received from a potential business owner about the bookstore he wants to open.
Aldermen Monday night voted seven-to-one, with Alderman Mike Lummis voting no, to provide a $15,000 revolving loan to radio personality Ben "Stone" Stomberg so he can open "Stone Alley Books and Collectibles" on South Seminary Street.
Aldermen tabled the loan request two weeks ago, in part, because they wanted more information about some of Stomberg's financing. Stomberg gave it to them -- specifically, regarding $10,000 he's getting in private financing.
"It has been secured and proof of deposit has been given to (Galesburg Economic Development Coordinator Cesar) Suarez," Stomberg said. "He has all the papers and affidavits from my bank on that regard. Also, I want to point out that the private financing was secured in that case not because of denial of any sort of bank loan from my bank or any other bank that I talked to, but because I was offered a better deal from a private investor. It was purely a business decision.
Stomberg will also receive a Business Innovation Grant from the city, the first under the city's program, as part of the financing.
Aldermen did not say much about the loan at Monday night's meeting, and Lummis did not speak on the loan before casting his "no" vote.
Stomberg said the accusation two weeks ago that the business was under-capitalized couldn't be further from the truth. He explained that he could be open for four months and not make a dollar before it would have to close.
"Stone Alley Books and Collectibles" is slated to be open in August.
(Ben Stomberg speaks to the Galesburg City Council Monday night, as Galesburg Economic Development Director Cesar Suarez, right, looks on. WGIL News Stories and Photos by Will Stevenson.)
|06 15 09 by Newsroom
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