The Atlantic City Council, Wednesday evening, heard from Chamber and CADCO officials, with regard to a proposed $100,000 pledge from the City’s Economic Development Revolving Loan (EDR) Fund that is intended to act as a source of loans for new business start-ups, in Atlantic. Chamber Executive Director Bailey Smith talked about the terms of the loans. (Click on the left side of a sound bar below to listen)

The loans are intended for anyone seeking to establish a business in Atlantic, but is tailored more toward younger entrepreneurs in their 20’s and early 30’s. Those persons must have a business plan and provide other, required financial information. CADCO has it’s own Revolving Loan Fund for the anywhere in the County, but CADCO Executive Assistant Jennifer Rosener-McEntaffer said that fund is depleted.

The Council approved a pledge of funds for the EDR. Toward the end of the Council’s session, during the Public Forum, discussion about the EDR became heated, when Talya Kamies and Thomas Schroeder suggested the Council strongly consider making funds available as part of an incentives program via means of a grant, instead of a loan. Kamies and Schroeder are the owners of “Style 60,” a women’s boutique. They recently purchased the former Howard’s Clothing Store at 415 Chestnut in downtown Atlantic.

Kamies ran the business out of her home for about six months before moving her current location on West 7^th Street. She said Mayor Dave Jones approached her about obtaining a SWIPCO (Southwest Iowa Planning Council) loan, instead of using the EDR fund she’d been told about. That didn’t sit well with her, because she says it appear the fund – which currently has about $220,000 – has not been used.

That’s why she, and Thomas Schroeder, were adamant that the City strongly consider making grants available to small business owners, instead of a loan. Schroeder said their business would use grant money to make exterior improvements to their building downtown, and utilize other local businesses to make that happen.

The meeting became contentious, when Kamies and Schroeder accused Mayor Jones of not being willing to listen to their suggestions and instead pushed them toward other incentives instead of the EDR. Atlantic Police Chief Dave Erickson threatened to have Kamies and Schroeder removed after an argument erupted between them, the Mayor and Councilperson Kathy Somers.

Atlantic Mayor Dave Jones told the crowd the first step is to get the loan money out there through the EDR. He mentioned a group currently working on another plan, and more information could be released on that program as early as next week.