Company seeks $150K loan

COLDWATER - A manufacturer of rubber products is seeking a $150,000 revolving loan from the county to pursue a nearly $1 million expansion to boost production and add six full-time positions.

Mercer County Commissioners on Thursday set a public hearing for 2 p.m. Feb. 11 to gather public input about De Ruijter International USA's request for the $150,0000 revolving loan. It will be in the commissioners' office at the Mercer County Central Services Building, Celina.

The proposed seven-year loan bears a 3 percent interest rate and requires the company to create six full-time jobs, four of which must be made available to low- to moderate-income people, according to Renee Muhlenkamp, assistant director of the county's community development office.

Based on previous citizen input and local officials' assessment of the county's and Coldwater's needs, the county is preparing to grant the loan request to help De Ruijter purchase equipment to increase production.

"This second public hearing is being held to give citizens an adequate opportunity to review and comment on the county's proposed application before the loans are approved," county economic development director Jared Ebbing said.

If approved, the business would pair the $150,000 revolving loan with $300,000 in equity and $325,000 from a private lender to complete the $775,000 project to add a new line and increase production, Ebbing said.

Officials want to begin the project in the coming months, he added.

De Ruijter has been operating in Coldwater for nearly 20 years, according to Ebbing. It has 17 employees.

De Ruijter supplies raw rubber materials to the automotive and tire industries. It also manufactures floor matting for the industrial, food service and agricultural market place, according to its website.

The county's revolving loan program started 26 years ago and is funded by grants received from the U.S. Department of Housing and Urban Development and the Ohio Department of Development. The local economic development office reviews, approves and distributes the funding. The state requires public hearings for each application.

The low-interest loans can be used for fixed assets such as land, buildings, machinery and equipment and as working capital to expand an existing or start-up business.

Except for local infrastructure needs, the funds awarded are repaid to the local community's revolving loan fund with interest to provide funding for other businesses needing assistance.

The county's revolving loan has a balance of more than $800,000. During the past five years, more than $2.8 million has been loaned to new and existing businesses in Mercer County to create more than 190 jobs.