OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Loan Administration Board Meeting Summary – May 22, 2026

City Council — Friday, May 22, 2026
BodyEvansville, Indiana
SessionCity Council
DateFriday, May 22, 2026
StatusFILED
Video Record
0:00 / 8:55
Transcript — Verbatim
0:01

All right, we'll now call to order the May 22nd Loan Administration Board meeting.

0:07

First item on the agenda is the to approve the minutes from the February 27th 2026 meeting.

0:15

I'll make a motion to approve the minutes.

0:19

Any discussion?

0:22

All in favor?

0:24

Aye.

0:24

Aye.

0:26

Any oppose?

0:28

No.

0:29

Okay.

0:30

The motion is carried.

0:31

The second item on the agenda is to approve the executive session memo from February 27th, 2026 meeting.

0:40

Someone like to make a motion.

0:42

I would make a motion.

0:45

I second.

0:46

Second.

0:47

All in favor.

0:48

Aye.

0:49

Aye.

0:50

Any that oppose.

0:53

The motion is carried.

0:55

Next up, we'll get updates on Heloponics, Royal Transportation, and Gala Cakes.

1:07

Lou, let's start with Heloponics.

1:12

As a reminder, Helponics has three loans with us.

1:15

The first two were interest only loans with the balloon payments.

1:19

And the third loan was an interest only loan that was changed to a uh their transitions to a traditional mortgage.

1:26

The goal was to apply for an SBA loan that would help with uh that would cover the uh balloon payments on the first two loans.

1:32

But uh there's a change in administration, and so the requirements kind of shifted, and uh despite pre-approval, they weren't able to secure their SBA loan.

1:41

So they're requesting assistance so they can try to uh reserve their cash flows to focus on sales.

1:46

They have been meeting sales targets, and uh they did give us an update about the uh they believe there's new 90% guaranteed mid-supply chain business loans that are being offered that they're hoping to apply for, but uh they're they're they're initially told to reapply when they expect to be 12 months out from profitability, and uh during their last visit here they expected that to be about January 2027.

2:09

So do uh help them kind of last until then we suggested uh deferring of the first two loans 136-0101 and 136-01-02 until uh the start of 2027.

2:25

Um then for the loan uh 136-01-03.

2:30

Uh, we're suggesting to uh pay uh charge the uh minimum interest rate of four percent.

2:36

Uh with that one, we've already reached six months of deferment.

2:39

So uh to be consistent with the EDA 2020 plan, we can't defer it any further.

2:43

Okay but uh that'll at least reduce their payments to around um 416 a month.

2:49

Okay.

2:49

Brian, would um you said that they are gonna be able to apply at the beginning of 27.

2:55

So does the deferment need to go beyond that since there's it'll take time.

2:59

Um or is it a fast process?

3:02

Well, with their update the 90% guarantee loans, it's um um well I'm hoping they can apply sooner, but uh I figure we can at least go to the end of 2026, then reevaluate.

3:15

Okay, Brian, on the reduced interest rate on the zero three loan.

3:22

Is that for the duration of the loan or how long is that period of time?

3:27

I was thinking that'd be temporary also until the end of 2026, then we can reevaluate.

3:31

Got it.

3:33

I'll make a motion that uh we defer payments for EDA loan 1360101 and 1360102 until the um beginning of 2027, and uh we modify loan EDA 2022 loan one thirty-six zero one zero three to the minimum amount of interest of four percent until the beginning of twenty twenty seven as well.

4:04

Second second, thank you for the update.

4:08

All in favor, aye, aye.

4:12

Any that oppose?

4:14

Nope, the motion is carried.

4:16

Thank you for the update on heliponics.

4:18

We're gonna move on to Royal Transportation.

4:21

Yep.

4:21

Uh real transportation, the uh the business owner.

4:25

He he went out of business, and so you had to find a new career.

4:28

Um so um Christine, uh, she she was employed here um at that time and uh she made an informal arrangement with him to uh alter the payments to help them be able to sustain the loans.

4:41

Um loan uh one four seven uh 0101 he's making twenty-five dollar payments per month uh and on loan one four seven oh two oh two, he's making twenty-five dollars per month and on loan one four seven oh two oh three he's making fifty dollar payments per month.

5:00

Uh we're looking at formalizing those changes.

5:03

Um EDA we have to submit a uh six month report, uh the ED 209 report, and we have to uh report information on each individual loan, and right now they're flagged as a delinquent in that loan since we haven't uh uh formally modified the loan.

5:18

So we're looking at uh updating that so we can unflag them, hopefully uh reprove our improve our EDA reporting.

5:26

Do we know if they're only paying $25 a month when our final payoff date would be on those?

5:35

Um on the CRL loan, it's only like two or three years, I think on the other two.

5:41

Um if he if he keeps doing 100 a month and just moves that payment to the other two loans, then it should be less than 15 years.

5:50

But I think uh if he just stuck with a 25 and 50 dollar payment, then I could it could drag out to 15 years.

5:56

Gotcha.

5:57

Uh yeah, I I don't know if that's entirely consistent with the EDA 2020 plan, but since Christine already made those arrangements, we're we're not sure how difficult it would be to get out of that.

6:07

Okay, and uh we're not really sure how easy it would be him uh for him to pay it either.

6:12

Um so we're hoping at least formalize those changes and we'll try to thank you.

6:17

Yeah, thank you.

6:18

Someone wanna make a motion for the changes to royal transportation.

6:26

Submit a motion to approve.

6:31

Second, all in favor?

6:33

Aye, aye, any that oppose?

6:37

All right, the motion is carried, and we will move on to the update on Gala Cakes.

6:45

Uh Gala Cake, um, as a reminder, um uh her her business wasn't doing very well.

6:52

Uh, so she started uh partnering with a uh nonprofit uh to create a program she calls the mix of mission.

6:59

Um part of that was to uh she was going to apply for a grant and that was going to help her um keep up with uh payments, but uh the grant fell through and so uh to help her out we converted her loan to interest only.

7:13

Um the main issue is uh her deferment technically ended in January, so um her payment should have started in February, but since she's struggling, it's going to be difficult for her to try to back pay multiple months, so we're asking to defer uh February through April, so she only has to start with May, and she has submitted our May payment.

7:34

Great.

7:35

Great.

7:36

I'll make a motion that we defer gala cakes payments from February to April.

7:42

Is that correct?

7:46

I second.

7:47

Second.

7:48

Any discussion on Gala cakes?

7:51

All in favor?

7:52

Aye.

7:52

Aye.

7:53

Any that oppose.

7:56

All right, the motion is carried and now we'll move on to updates on loans and loan funds.

8:03

Um the uh most loans are loans in good standing, or mostly still in good standing.

8:11

We did have to send uh four loans uh two collections.

8:15

Those are mostly uh CRLF loans.

8:18

Um there's uh Barks and Rec, uh Berkerbrew House, and I think was uh Main Street wedding.

8:27

It looks like they're getting behind a little bit on payments, so I'm gonna reach out to them, uh try to make sure there's no issues, but uh otherwise the other ones haven't really changed much.

8:37

Okay.

8:38

All right.

8:39

Thank you for the update.

8:40

Yep, appreciate it.

8:43

Is there any other business we would like to discuss this morning?

8:50

No.

8:51

All right, meetings adjourned.

8:55

Wow.

Discussion Breakdown — Share of Meeting
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Summary of Proceedings

Loan Administration Board Meeting – May 22, 2026

The Loan Administration Board convened on May 22, 2026 to approve previous meeting minutes, discuss loan modifications for three businesses, and review the status of loan funds. Key actions included deferments, interest rate adjustments, and formalizing previously informal payment arrangements.

Consent Calendar

  • Approved the minutes from the February 27, 2026 meeting. (Motion carried unanimously)
  • Approved the executive session memo from February 27, 2026 meeting. (Motion carried unanimously)

Discussion Items

  • Helponics Update: The business has three loans (EDA loans 136-01-01, 136-01-02, 136-01-03). The first two were interest-only with balloon payments; the third converted to a traditional mortgage. Helponics was pre-approved for an SBA loan to cover the balloon payments but could not secure it due to a change in administration and shifting requirements. The business is meeting sales targets and is exploring a new 90% guaranteed mid-supply chain business loan. They were advised to reapply when 12 months from profitability (expected January 2027). To bridge the gap, staff recommended deferring payments on the first two loans until early 2027 and reducing the interest rate on the third loan to the minimum 4% (from current terms) temporarily through the end of 2026, after which the situation would be reevaluated. The board voted unanimously to approve these changes.
  • Royal Transportation Update: The business owner went out of business and took on other employment. An informal arrangement was previously made by staff member Christine to reduce payments: $25/month on loan 147-01-01, $25/month on loan 147-02-02, and $50/month on loan 147-02-03. Staff proposed formalizing these modifications to improve EDA reporting (the loans are currently flagged as delinquent). The board expressed concern about the extended payoff timeline (potentially up to 15 years) but moved to approve formalization. Motion carried unanimously.
  • Gala Cakes Update: The business has been struggling. It partnered with a nonprofit on a program called "Mix of Mission" and received a loan conversion to interest-only after a grant fell through. The deferment ended in January 2026, so payments should have resumed in February, but the owner is having difficulty with back payments. Staff requested a deferral of payments for February through April 2026, allowing her to restart payments in May 2026 (she had already submitted May's payment). The board voted unanimously to approve the deferral.
  • Loan Fund Status: Most loans are in good standing. Four loans have been sent to collections (mostly CRLF loans: Barks and Rec, Berkerbrew House, and Main Street Wedding). Staff will reach out to these borrowers to check on issues.

Key Outcomes

  • Helponics: Deferred payments on EDA loans 136-01-01 and 136-01-02 until early 2027; reduced interest on loan 136-01-03 to 4% through end of 2026 (unanimous).
  • Royal Transportation: Formalized modified payment arrangements ($25, $25, $50 per month) with the board's approval (unanimous).
  • Gala Cakes: Deferred payments due for February through April 2026 (unanimous).
  • Motion carried unanimously for all actions taken.

Meeting Transcript

All right, we'll now call to order the May 22nd Loan Administration Board meeting. First item on the agenda is the to approve the minutes from the February 27th 2026 meeting. I'll make a motion to approve the minutes. Any discussion? All in favor? Aye. Aye. Any oppose? No. Okay. The motion is carried. The second item on the agenda is to approve the executive session memo from February 27th, 2026 meeting. Someone like to make a motion. I would make a motion. I second. Second. All in favor. Aye. Aye. Any that oppose. The motion is carried. Next up, we'll get updates on Heloponics, Royal Transportation, and Gala Cakes. Lou, let's start with Heloponics. As a reminder, Helponics has three loans with us. The first two were interest only loans with the balloon payments. And the third loan was an interest only loan that was changed to a uh their transitions to a traditional mortgage. The goal was to apply for an SBA loan that would help with uh that would cover the uh balloon payments on the first two loans. But uh there's a change in administration, and so the requirements kind of shifted, and uh despite pre-approval, they weren't able to secure their SBA loan. So they're requesting assistance so they can try to uh reserve their cash flows to focus on sales. They have been meeting sales targets, and uh they did give us an update about the uh they believe there's new 90% guaranteed mid-supply chain business loans that are being offered that they're hoping to apply for, but uh they're they're they're initially told to reapply when they expect to be 12 months out from profitability, and uh during their last visit here they expected that to be about January 2027. So do uh help them kind of last until then we suggested uh deferring of the first two loans 136-0101 and 136-01-02 until uh the start of 2027. Um then for the loan uh 136-01-03. Uh, we're suggesting to uh pay uh charge the uh minimum interest rate of four percent. Uh with that one, we've already reached six months of deferment. So uh to be consistent with the EDA 2020 plan, we can't defer it any further. Okay but uh that'll at least reduce their payments to around um 416 a month. Okay. Brian, would um you said that they are gonna be able to apply at the beginning of 27. So does the deferment need to go beyond that since there's it'll take time. Um or is it a fast process? Well, with their update the 90% guarantee loans, it's um um well I'm hoping they can apply sooner, but uh I figure we can at least go to the end of 2026, then reevaluate. Okay, Brian, on the reduced interest rate on the zero three loan. Is that for the duration of the loan or how long is that period of time? I was thinking that'd be temporary also until the end of 2026, then we can reevaluate. Got it. I'll make a motion that uh we defer payments for EDA loan 1360101 and 1360102 until the um beginning of 2027, and uh we modify loan EDA 2022 loan one thirty-six zero one zero three to the minimum amount of interest of four percent until the beginning of twenty twenty seven as well. Second second, thank you for the update. All in favor, aye, aye. Any that oppose? Nope, the motion is carried.

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