As the state budget stalemate drags on, the Butler Area School District is considering taking out a loan.
The school board heard from a representative of First National Bank during Monday’s meeting concerning a proposal for a Tax and Revenue Anticipation Note for $16 million.
Director of Business Services Deborah Brandstetter believes the district will be able to use existing funds through January (of 2016) before needing the loan. Any money used from the loan would be repaid once funds are released from the state. The district would likely only need to pay about $3,000 for fees and closing costs on the loan.
Above all taking out a loan is a decision that must be taken incredibly seriously and therefore completing as much research as possible prior to accessing any funds is crucial. There are a wide variety of different types of loans out there available for businesses and therefore it is important to distinguish between some of the main types.
For example, did you know that in times of financial crisis, certain businesses are entitled to an Economic Injury Disaster Loan? Consequently, if your business is struggling, you can find out more about your eligibility for an EIDL and learn how to assess your eidl status on the Zenefits website.
For now, the bank representative said they are helping at least a dozen other schools through this same process.
No action will be taken until at least December so other proposals can be gathered.
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