Previously, a loan was approved by the Jamestown Local Development Corporation for the new brewing company, Water Street Brewing, looking to open at 137 Water Street, and at the January meeting of the JLDC the project was brought up again briefly in regards to looking at an aspect of their finances.

The JLDC reviewed the three months reserve letter from M&T Bank for Water Street Brewing during their latest meeting. City Economic Development Coordinator, Aili Makuch, said the letter was the final contingency for approval of the project.

“This letter from M&T is a stipulation that the owners of 137 Water Street Brewing Company, they were asked to provide a minimum of three months worth of reserves based on their financial projections,” Makuch said. “This letter from M&T bank does show they have at least three times what they have projected for monthly costs in reserves.”

While the loan has officially already been voted on, Makuch said she wanted to bring it before the board to make sure everyone had seen it. JLDC member Wayne Rishell provided some background to the new members on the project, saying that when the applicant presented financial statements to the board they had no working capital on their opening balance sheet.

“Anyone who is in business understands that as you’re ramping up, especially a new business, you’re going to need some resources, upon inventory purchases, payroll, until they get their business up to a point where they’re going to be able to sustain their operating funds,” Rishell said. “So, the board requested that they prove that they have those resources available to them to weather the storm and the ramp up of their business.”

The owners of Water Street Brewing Company requested a $200,000 loan at four percent interest over a 10 year term, which was approved with contingencies such as the reserves letter during the October meeting of the JLDC.