Company requests loan for aviation engine project
At its Tuesday, Sept. 22, meeting, the St. Croix County Board will be asked to authorize a $600,000 Community Development Block Grant loan for Engineered Propulsion Systems, New Richmond.
The company, which intends to build a new diesel engine for airplanes and helicopters, has applied to the Wisconsin Department of Commerce for the federally funded grant.
The company has patented a light-weight flat V-8 engine and plans to bring the fuel-efficient diesel engine into production. The total project cost is $41.75 million.
The $600,000 loan will be forgiven if the company invests $41.5 million and creates and retains 127 new full-time jobs in New Richmond by Dec. 31, 2018.
The interest rate on the loan will be 2 percent, but the loan will be deferred until forgiveness measurement dates of Dec. 31, 2014, and Dec. 31, 2018. For the portion not forgiven, the loan balance, both principal and interest, will be due.
The company now has three full-time jobs in New Richmond but is expected to create 127 new jobs with an average wage of $24.99 an hour by the end of 2016 and maintain all those jobs until the end of 2018.
The forgiveness will be a set rate for each new job maintained. If all the jobs are created and maintained on schedule, the full loan will be forgiven.