Entrepreneurs opening T-Rex-S Outdoor Store will get a $205,000 revolving loan from the city of Nacogdoches to build the new store, which is expected to create 13 new jobs.
The store will sell Polaris and BRP vehicles as well as New Holland farm equipment. Its payroll is expected to exceed the loan amount in its first year.
The loan authorized by the City Council Tuesday will fund about 20% of the $1 million cost to open the business in the oldest city in Texas.
The city's loan fund will come from recaptured federal tax dollars meant for the "sole purpose of creating jobs," City Manager Jim Jeffers told the Nacogdoches Daily Sentinel.
Auto dealer Rex Perry already owns a car lot at the T-Rex–S site. Sales and maintenance tech Tim Smith will be general manager, and Perry is expected to provide and handle much of the financing.
Terms of the revolving loan fund are 10 years with an interest rate 2% below prime, with a floor of 1%.