Staff reports delinquencies, recommends removing bankrupt accounts from Evansville loan capital base

Christine Pryor presented the board with a loan report identifying outstanding balances and several delinquent or bankrupt accounts. She named Fountainview Mini Market and BP BLP Enterprises as making payments to legal counsel, said Chelsea Fitt and Kana l Brown remain in negotiation or contact efforts, and reported that Plank Nutrition, Megan Roberts and Vidal Plastics have bankruptcy actions or negotiations that make recovery unlikely.

Pryor recommended removing loans that are in bankruptcy or are otherwise unlikely to repay from the loan capital base so the board can have a clearer picture of available funds for future lending. She gave an example figure: Plank (under the regular EDA loan) shows a balance of $46,000; removing certain accounts would reduce the capital base to about $942,000. Pryor said the EDA 2022 loan pool originally reflected earlier amounts (an original capital base referenced in the report) and that periodic write-offs have occurred historically.

Board members asked whether the delinquent loans carried personal guarantees; Pryor and another board member said some had personal guarantees, but personal bankruptcy filings can discharge obligations absent evidence of fraud. Pryor said the city’s loan system records defaults and that the loan application asks about prior bankruptcies and outstanding debts to help flag repeat applicants or related parties.

Pryor also reminded the board that the EDA plan is due in July 2025 and offered to circulate the plan electronically; she recommended working with eRep on community economic development strategy so the city’s priorities align with EDA requirements and funders. She noted that the board will continue to meet in 2025 and that meetings may be canceled if no applications are pending.