City control board OKs $1M loan to Brilex

staff report

YOUNGSTOWN — The city’s board of control approved a $1 million low-interest loan to local manufacturer Brilex Industries Inc. at a special meeting Tuesday.

Brilex will use the money to purchase additional equipment and retain jobs.

Brilex, located in the Riverbend Business Park on Crescent Street, employees about 125 people. The company fabricates, assembles and repairs customized machinery for other businesses.

The city, in conjunction with a reliable bank, assures that the company receiving the loan has a stable credit history and the bank guarantees the money will be repaid if the company should default.

Brilex will pay 0.25 of a percent interest for 12 months.

The city has $10 million set aside for the loan program, and to date it has loaned $5 million to companies.

In the future, the loan program may not be able to assist businesses because of the current economic state of the country.

Banks will not be as willing to participate, said T. Sharon Woodberry, city director of economic development.

Because businesses will have a harder time getting assistance, the city could see more of a strain on economic development, Woodberry said.