Paint Township expects to hear by early next week whether a $300,000 loan request is granted by 1st Summit Bank.
But the board already knows it would be “a very short term” loan, one that would be scheduled for repayment over two or three years, Supervisor Dave Blough said Wednesday.
“They have all the necessary paperwork from us now. And the bank is going to make a decision (today) from what we’ve been told,” Blough said. “We should know something by early next week.”
He said the board talked with the bank about extending the loan repayment “a little longer” to decrease the annual burden, but lenders want to recoup the money quickly.
Paint Township has mounting debt that is expected to climb to more than $300,000 by year’s end.
The township needs the loan to get back on track, and plans to raise taxes
6 mills to raise revenue to repay the loan and avoid future deficits.
Most of the millage, 4 mills, will be dedicated to the loan’s repayment. But Blough said a 2- or 3-year repayment could have a silver lining for township residents.
Board members have said they
would push to lower taxes once debt service is repaid.
Of course, the township must first be approved for the loan.
If 1st Summit approves the request, it would take months to close on it, Supervisor Joe Huff Jr. has said.
The board must get county court approval – and the state’s blessing – before it could use the funds.
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