FAIRMONT — The Fairmont Economic Development Authority this week approved a loan that will assist Fairmont Glass and Sign with the purchase of a building to expand the business.

Fairmont Glass and Sign co-owners Steve Geiger and Jeff Miller plan to purchase the former MRCI building and a garage at 703 and 713 Cory Lane and move operations from its current location at 1240 Lake Ave., which they do not own.

FEDA approved the $75,000 loan for 20 years at a 3.25 percent fixed interest rate from its original revolving loan fund. FEDA will hold a second position on the property as well as personal guarantees as collateral. Profinium Bank will supply traditional financing for the remainder of the purchase.

Fairmont Glass and Sign sought the financial assistance in order to grow and diversify, said Linsey Preuss, Fairmont economic development coordinator. Currently, the company has 11 full-time and two part-time employees, with plans to add three or four full-time and one or two part-time jobs within the next two years.

FEDA members also dealt with other loan applications from the new CARES Act $610,000 revolving loan fund, following loan committee recommendations by approving two and denying three requests.

El Agave and Minuteman Press both were approved for five-year zero interest loans for $25,000 to offset loss of revenue and help pay expenses as a result of COVID-19.

El Agave, a Mexican restaurant, currently is paying off a $25,000 loan from 2003 from FEDA’s original revolving loan fund. Preuss noted that there never has been a late payment and only $1,700 remains on the loan balance. El Agave will use the building at 62 Downtown Plaza and personal guarantees as collateral.

Minuteman Press, a printing, marketing and graphics design company, plans to use the funds to expand services, purchase equipment and offset expenses due to losses in revenue resulting from the pandemic. Collateral will include equipment such as a paper folder, paper cutter and tabber.

FEDA supported its loan committee’s recommendation to deny applications from Tom Rodgers Insurance and Scuba, Martin County Rental Resources LLC and Landmark Management Company of Martin County LLC. All three had applied for zero-interest $25,000 loans from the CARES Act revolving loan fund.

“In reviewing the financials of the businesses, the Revolving Loan Fund Committee did not see a significant loss in revenue or significant hardship that was due to COVID-19,” Preuss said. The requests also listed ineligible uses of the federal funding, such as property taxes or refinancing existing debt.

“We want to make sure that our resources are being used to the best ability that we have,” she said. “We do have more applicants that I have been speaking with so I am expecting more applications. Some are waiting to see if they got the (CARES) grants, and others are getting their documentation together.”

FEDA has two years to loan out the $610,000 in the new CARES Act revolving loan fund or any remaining funds must be returned to the federal government.

In addition to the zero-interest FEDA loans, local businesses also had the opportunity to apply for a portion of the $1 million in COVID grant money made possible through a collaboration between the city of Fairmont and Martin County, but the window for applications has closed. The city must award its $250,000 share of the grant money by Nov. 15. However, the county has until the end of the year, so a second round of grant requests might be opened if any of its $750,000 share remain.

Preuss said 86 grant applications were received.