Portland PDC approves loans for Bad Neighbors and Sherry LLC to help businesses open

At its March meeting, the Portland Development Corporation approved two commercial loans intended to help neighborhood food-service businesses open or finish build-outs.

The board approved a $100,000 commercial loan to Bad Neighbors, moved and seconded during public session. Dennis Gaines, co-owner of Bad Neighbors, told the PDC cost overruns drove the request: "We had to remove about 320 square feet of concrete floor to put in plumbing," he said, describing the build-out challenges and the need for funds for final construction and initial inventory. The loan was approved at 7.75% interest for a five-year term on a roll-call vote.

The PDC also approved a $50,000 commercial loan to Sherry LLC, a new neighborhood French-inspired restaurant. Co-owners Quinn Williams and Melody Medina described the concept and operational plans; Medina said the restaurant is named after her late mother. Staff summarized loan conditions on the floor: owner equity must be invested before PDC capital, the borrower must assign a life-insurance policy, and PDC disbursement will be contingent on the project remaining on schedule. The interest rate specified in the packet and for earlier loans was 7.75%; a transcription error in the meeting audio showed "77.75%" — the board discussed and approved the loan under the same commercial loan terms used for other approvals.

Underwriting details for both loans were handled by staff and are subject to executive-session review where confidential financial information is discussed. Board members congratulated the applicants and encouraged local outreach and publicity for new openings.