Delaware City Council voted 7-0 Nov. 16 to approve $100,000 loans from the city's revolving loan fund (RLF) for two local businesses.

The money will allow the businesses to expand their operations and hire more employees, which are criteria for the loans, said Dave Efland, Delaware director of planning and development.

The state administers the RLF program and gives money to cities and counties to provide loans to existing and new businesses to pay for fixed assets to develop new commercial products.

The city has about $500,000 available for such loans, said city spokesman Lee Yoakum. As money is loaned, the payments from other companies who have received loans in the past replenish the fund.

"We've built up a balance in that fund and if we don't draw it down we risk having to return it to the state," said city manager Tom Homan. "I'm not saying we need to make willy-nilly loans but we do want to be aggressive with lining up our dollars with businesses we feel are a good risk for the city."

Monday night council approved a $100,000 loan at no percent interest to be repaid over five years for Engineered Materials Systems Inc. at 101 Johnson Drive, to purchase equipment to support its renewable energy product line, Efland told council.

This company ha received revolving loan funds in the past and repaid them, he said.

"EMS has a good track record with us and we feel confident with what they are doing," Homan added.

"We've been discussing this with EMS for six months," Homan told council. EMS applied for a state energy grant but did not qualify, he said.

The other $100,000 grant is for 2 percent interest, with repayment over 10 years, for Amato's Woodfired Pizza at 6 S. Sandusky St. Those funds will be used to purchase restaurant equipment including pizza ovens.

The company currently is expanding the business into an adjoining storefront and enclosing a patio, said owner Craig Johnson. It had a bank loan in place but two days before closing the bank withdrew the loan offer. The business has had no luck securing financing from other sources, Johnson told council.

"This is the most prominent corner in the city," Efland said. The restaurant "will bring life and activity to that plaza."

cpreston@thisweeknews.com