newsnews

Local company receives $3.5 million loan

By From staff reports
Published: January 12, 2009

» 0 Comments | Post a Comment

Dixon Lumber Company has been awarded a multi-million dollar loan to assist with the retooling of the business.

In a letter dated Dec. 18, Gov. Bob Riley informed Eufaula Mayor Jay Jaxon that the state is reserving Community Development Block Grant funds to assist Dixon Lumber.

“For this project $3,500,000 in economic development funds have been reserved,” the letter states. “Of this, $3,300,000 will be a one year 1.5 percent loan to be secured with an irrevocable letter of credit from an acceptable bank, and $20,000 grant for program administration.”

The letter ends with Riley stating, “It is a pleasure to be able to reserve these funds to assist this business development, which not only benefits your area, but the entire state of Alabama.”

Eufaula City Council members voted unanimously in August to assist Dixon by pursuing funding for the business, which closed in Feburary of last year. Approximately 140 employees lost their jobs as a result of layoffs.

According to the resolution adopted by the council, the retooling of Dixon Lumber Company, which was founded in Clayton in 1928 and moved to Eufaula in 1935, will create 106 jobs once the retooling process is complete. The cost of retooling is expected to cost much more than $3.5 million, though.