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Economic Growth Spurred by Loans
Bv Walter Her/
Staff Writer
In an effort to encourage economic
growth in Carrboro, the Board of
Aldermen has developed the practice of
awarding loans to local businesses.
The latest business to benefit from
government funds is Paper, Pen & Ink,
a local stationary and printing facility
located at 103 E. Main St. The board
unanimously agreed to a $3.5,000 loan.
Esphur Foster, co-owner of PP&I,
said she and her partner, Valerie
Bateman, were looking to expand their
primarily home based business.
AVe did it to get a larger space and
enlarge our inventory and make it more
complete,” she said.
More than 15 loans have been
awarded to establish and maintain local
businesses in Carrboro.
Alderman Mark Dorosin said the
money for the loan fund originally
came from a federal grant.
“ The money for the loan fund came
from community development block
grants given by the federal government
for community development,” Dorosin
said. “Different cities use the money in
different ways, and this is how Carrboro
decided to use it.”
Foster said the size of a loan could be
decided by each particular business.
“You set the number, then justify it,”
she said. “We even did our own per
centage rate of interest. We tried to
determine what would be a reasonable
monthly payment.”
Alderman Diana McDuffee said it
was not unusual for towns to provide
financial support to businesses.
“1 think it’s not a unique economic
development tool towns use,” she said.
“Towns use all kinds of ways to encour
age business. We want businesses to
locate in Carrboro and we want to
ensure they’ll be successful.”
foster said the town’s loan to PP&I
would be put to use in its new location
at 118-A E. Main St. in Carrboro which
formerly housed Roots CDs & Vinyl.
“We’re using the money mostly for
the increase in inventory,” she said.
“We’re even using some of it for recar
peting and sprucing up the place.”
Foster said the application process
involved several meetings with town
officials. “We had to submit a business
plan and schedule a meeting with the
Carrboro Downtown Commission,” she
said. “We were provided with valuable
guidance along the way.”
Foster said a due date for the pay
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They're in the Money
The Carrboro Board of Aldermen offers loans to local businesses to encourage economic
growth in town limits. The money originally comes from federal block grants.
Business Loan Amount interest
Weaver Street Market $89,500 9%
Music Loft $55,000 7%
Acme Restaurant $50,000 7%
Ashley's $50,000 7.5%
El Chilango $50,000 7%
Milltown Bistro $50,000 7%
Orange Chatham Health $50,000 5.25%
Trains Restaurant $50,000 7%
Aurora $40,000 5%
Carrburritos $40,000 10%
Paper, Pen & Ink $35,000
S&B $30,000 6.5%
University Printery $30,000 8%
FJBTI $25,000 8.5%
Roots CD & Vinyl $20,000 7%
Inkspot $17,000 7.5%
Triangle Online $9,500 7%
iOURCE: BOARD OF ALDERMEN
back of the loan had not been decided.
“They (town officials) are in the
process of doing all that right now,” she
said. “The town attorney is in charge of
it. We haven’t received a date yet.”
Vivian Olkin, manager of the Inside
Scoop in Carrboro, said her business
had been awarded a $17,(X)0 loan by the
town, though the ice cream shop decid
ed not to accept the loan.
“I wish more towns did this kind of
thing,” Olkin said. “It’s one of the real
ly neat things about Carrboro. It helps
encourage small business, and that is
what this area is know'n for: specialty
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shops.”
Chapel Hill does not have a loan pro
gram similar to the one in Carrboro.
Chapel Hill Town Council member Pat
Evans said such a program was not nec
essary in Chapel Hill.
“If you need to attract businesses, it’s
a good program because the money’s
always there,” she said. “But Chapel Hill
is different. We don’t have many empty
storefronts, so attracting businesses is
not an issue. The need is not there.”
The City Editor can be reached
at citydesk@unc.edu.
City
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