Reed City Council grants loan to Red Tail Brewery
Reed City Manager Ron Howell recommended the council approve the loan because of the low monetary amount, a low risk factor with lending to Murphy and a recommendation by the City Revolving Loan Committee. In addition, Murphy offered to use the building and his brewing equipment as collateral.
After discussion, council members approved a motion for Murphy to receive a $10,000 loan with an interest rate of 6.5 percent for five years. Seventy-five percent of the Red Tail Brewery building and 25 percent of brewery equipment will be used as collateral.
Murphy said despite miscommunication between him and the city regarding the loan, he is pleased with the outcome.
"I'm surprised," he said. "This has been going on for more than two months now and things have been back and forth, but I'm totally excited."
Murphy said because he knows he will have the funds to finish renovating the building, he can apply to schedule state inspection, which can happen in two to three months time. After the inspection, he expects to receive a license to brew on site.
If everything goes smoothly, Murphy believes the brewery could open in four to five months.