The Lampasas Economic Development Corp. is willing to lend a helping hand to businesses eyeing building improvements.
During the EDC Board of Directors meeting April 15, members unanimously agreed to partner with local banks for business improvement loans.
In February, First Texas Bank President/CEO Kelvin Barkowsky sent a letter to Interim City Manager Erin Harrison proposing a loan project to encourage the beautification of local real estate in the city.
Barkowsky was at last week’s meeting to discuss the proposal.
“We are not talking about big loans.We are talking about small improvement loans, facades, roofs, windows, doors, sidewalks – things like that,” Barkowsky said. “We are talking about maybe up to $100,000. Maybe we can negotiate the sum – might be a little more or less.”
Under the plan, First Texas Bank would offer special loans up to $100,000 to help local property owners improve their commercial buildings. Loans would carry an initial interest rate of 7.5%, with repayment terms up to 10 years and no loan origination fee. Additionally, the EDC could put up a certificate of deposit to cover the usual 20% downpayment. That deposit would be returned to the LEDC once the loan balance drops to 80% of the property’s value.
Harrison told trustees the EDC could structure the 20% downpayment as a loan itself, allowing for interest payments as the borrower pays back the loan. Or the EDC could utilize a monthly agreement where borrowers meet certain stipulations over a period of time, and outstanding debt is forgiven, she said. Harrison also said the 20% downpayment from the EDC could be in the form of a grant.
During discussion, the loan program received praise from EDC Board President Deorald Finney.
“I really appreciate the fact that this is not a First Texas Bank proposal,” he said. “You came and brought this and want it to be our program that would be available to people.”
Barkowsky acknowledged that this program would not be exclusive to First Texas Bank.
“I can’t tell you what to do; all I can tell you is I am willing to participate in that,” Barkowsky said of the smallbusiness loan option. “I know you are probably going to need to make that available to other banks, but I don’t have a problem with that. I just want to participate. And, I am hoping I am the only one that wants to do it. I think it is a good program all the way around.”
EDC directors unanimously approved a motion to partner with lending institutions for business improvement loans.
FAÇADE AND BUILDING GRANTS
Also in last week’s meeting, the EDC approved two grant applications for building and façade improvements for Lampasas Leader Partners I, L.P. The limited partnership owns the property at 416 and 418 S. Live Oak where the Dispatch Record has its office.
Harrison noted this was the first time a local business had approached the EDC for either building or façade improvement grants.
Due in part to rain damage suffered last year, Lampasas Leader Partners was seeking a $10,000 grant for building improvements and $6,942.50 for façade improvements. The total cost of improvements listed on the grant application was for $29,127, according to applicant Jim Lowe. Improvements to the building include upstairs and downstairs windows, flooring and door repairs.
EDC director Michael Gill expressed concerns with the building improvement applications submitted by Lowe. Gill asked if Lampasas Leader Partners had filed an insurance claim before seeking improvements on its downtown building.
Lowe said he was unable to receive any assistance from insurance.
“Not all of that was damage from the rain,” he said. “Some of it was, but some of it was pre-existing, you could say.”
Gill felt the building grant application requirements had not been met, since they didn’t directly affect the area where office staff work.
“What you are asking for tonight is improvements for part of your building that meet no requirements for the company Lampasas Leader Partners I, L.P., other than storage of stuff,” Gill said.
Finney said he believed Lampasas Leader Partners was more than worthy of grant assistance, “I feel like of all the businesses on our square, the Dispatch has been there for all of us my entire life,” Finney said.
Director Michael Irvin agreed with Finney, saying the EDC needs to support the enhancement of the downtown square.
EDC directors approved the building grant by a 6-1 vote with Gill dissenting. However, the façade grant was approved unanimously.
MORE EDC NEWS
Although no action was taken, EDC directors authorized city staff to establish guidelines for funding non-profit initiatives. The criteria would ensure EDCissued funding to non-profit groups are creating, expanding or retaining business opportunities.
In addition, Harrison provided some insight on EDC sales tax collections for the current fiscal year. April collections reached $37,977.86, a 14% increase from the same month in 2025.
Year-to-date collections for the fiscal year total $291,285.02, representing 64% of the annual budgeted sales tax revenue, which is ahead of projections, she said.
