The loan has a term of seven years. $250,000 of that can be converted to a grant if the company meets certain requirements. They must maintain an employment level of 42 employees during the period of the loan. They must pay employees at least $12 per hour and provide (at company expense) health insurance and other benefits at a level approved by the economic development corporation.
The comments bring to light other information. Of course, these have not gone through any kind of fact checking but these are things to look into and think about.
One commenter talked about a multiplier effect. Another said that this effect only works when the employees LIVE in the area. The commenter said that 25% of the employees do not live in Waco, but did not say whether they lived in McLennan county. S/he also said that only one of the managers lives in Waco. Again, that manager may (probably does) live in the county if not Waco proper.
There also seems to be a question as to whether the systems they produce and sell are obsolete.
One commenter opined (and several joined in - add my voice to that chorus) that if they had such a bright future, why didn't a bank or investor (who are the pros at knowing when something can be paid back) put up the money?
This prompts more questions in my mind:
- Did they seek funding from private sources before coming to the economic development corporation?
Did they have trouble paying the rent and their landlord (Councilman Jim Bush) suggest that they go to the economic development corporation? - How many local companies are being turned down for loans or grants from the corporation?
- Are records application available to the public?
- How can I see them?
NOTE: I need people to help research this stuff and come to the city council meetings.