City IDB to loan CorStone $891,819
Published 7:35 am Wednesday, September 14, 2011
The Greenville City Council voted unanimously Monday night to guarantee an $891,819 Industrial Development Board (IDB) loan to CorStone Industries.
The loan will help fund the purchase of new equipment that will enable CorStone to expand its manufacturing capabilities and potentially hire an additional 25 employees, according to Mayor Dexter McLendon.
“CorStone has been a great supporter of Greenville, and this is an opportunity for us to help them progress with their business, and there’s a good chance that this will create some more jobs in the city, which is always a good thing,” McLendon said.
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CorStone, which received an Industrial Development Board loan when it purchased its building in 2000, will use its current facility as collateral for the loan. Should the company default on the loan, the City of Greenville would become the owner of the facility, which McLendon said is valued at approximately $1.7 million.
“This is a common practice in regards to industrial development,” McLendon said. “For the city there’s really very little risk considering the great financial shape CorStone is in. When we did this with CorStone before they paid off the building in 10 years, and if for some reason they run into trouble and aren’t able to pay off this loan, we’ll get a building that’s worth more than the value of the loan. We’re just excited to be able to help CorStone and hopefully create some more jobs.”