FAIRMONT - Fairmont Orthopedics and Sports Medicine was approved for a $75,000 loan on Monday, from Fairmont Economic Development Authority.
The money will go toward operating capital or equipment for Center for Primary Care. The medical facility was formed in December, when its parent company, Fairmont Orthopedics and Sports Medicine, purchased Dr. Ole Braaten's practice.
According to the information presented Monday to the economic development authority, Center for Primary Care will employ seven people: a family doctor, a physician assistant, nursing staff and two other employees.
"This project will help Fairmont retain a well-established medical practice to offer even great choice in health care," wrote Mike Humpal, Fairmont city administrator in his recommendation for the loan approval.
Other funding sources for the project come from traditional bank financing of $115,000 and equity of $40,000.
The company also spent $195,000 to purchase Dr. Braaten's building, which will in turn be sold in May to allow another medical care provider to expand, Humpal said.
"It's nice to have choices," said City Council member Wes Clerc, who also serves on the EDA board.
The $75,000 loan has a 4 percent fixed interest rate and must be repaid in seven years. Personal guarantees were required, along with a second position UCC filing on Fairmont Orthopedics and Sports Medicine.
In other business Monday, FEDA approved paying half the cost of a housing study. The $13,900 bill will be split with the local Housing and Redevelopment Authority.
The study, to be completed by Community Partners Research, will include recommendations for housing improvements specific to Fairmont.