County News file photo
Cathy and Jay Phillips of Papa Jay's Restaurant in Geneseo.
Village of Geneseo
Papa Jay’s okayed for a business development loan
‘Papa’ Jay Phillips received approval for a business development loan for his namesake restaurant at the Monday, March 19, meeting of the Genesee Village Board.
Phillips will be loaned $8,250 over a maximum eight year term at 1.5-to-2.0 percent interest, to be based upon the village’s average rate of CD return from five local banks, adjusted annually, plus one percent.
Collateral in the form of restaurant furnishings and equipment will be expected.
Phillips intends to invest in various kitchen and utensil items which will allow the restaurant to offer a gluten-free menu, expand its variety and quality of ice cream flavors, and enhance its catering/barbecue service.
The loan fund was created from repayment of the new Scoville Building mortgage, provided through HUD funding after the devastating 1984 fire.
Fund-derived low interest loans have been available to Geneseo businesses for more than 20 years, but to date have only been provided to two other businesses.
One of the businesses, Athletica, has received multiple loans and has maintained a sterling record of repayment. The other, Oak Valley Inn, defaulted several years ago, depriving the fund of more than $100,000.
In addition, interest from the business development fund has supplied the village’s popular matched payment sign grant program.