Ten downtown businesses that borrowed money from the Jamestown Local Development Corporation will no longer have their loans frozen.

The JLDC board discussed last week whether to keep the loans frozen, which started in March following the COVID-19 pandemic. In May, the JLDC, with approval from the Jamestown City Council, froze the loans until Aug. 30.

Stephanie Wright, city economic development coordinator, said she had reached out to all 10 businesses that have a JLDC loan about the possibility of them restarting payments and only heard back from five. She said Nate Enterprises, which owns Esquire Cleaners, and the Chop House on Main said they are prepared to start resuming loan payments. However, Nouveau, a hair salon, Thurston Development, which owns the Labyrinth Press Company and Brazil Craft Beer and Wine Lounge, and HH Jamestown, which is the Hamister Group, the owners of the DoubleTree by Hilton Jamestown, are not ready to restart payments. Wright said these businesses are having a difficult time because they’re not allowed 100% occupancy due to the pandemic.

During the discussion, John Sellstrom, city financial coordinator, said last year the JLDC made $31,824 in interest from the loans while the corporation currently is generating nothing while the loans are frozen.

The other businesses with JLDC loans include Gialy’s, Jamestown Rental Properties, Crown Street Roasting Company, Shults Real Estate and International Ordinance Technologies.

Tim Smeal, JLDC board member, said many of the businesses with loans are quite different from each other and the pandemic might be hurting some businesses more than others. Jamestown Mayor Eddie Sundquist agreed with Smeal, who then asked the board if they wanted to continue freezing the loans for all the businesses or should it be done on a case-by-case basis. Kristofor Sellstrom, JLDC board member, than proposed asking the businesses to make interest only payments, with the option of paying the principal as well. Sundquist added that could be done and if the business cannot make the interest payments, they can apply to the JLDC for a hardship wavier.

“If they can’t make the interest payment, then they can ask for a hardship wavier, but would need to provide their financial information to show the hardship” he said. “Then we can determine it on a case-by-case basis.”

The JLDC board approved a resolution to have the businesses start making interest only payments as of Sept. 30 until Dec. 31, unless they are granted a hardship wavier.