McHENRY – Plum Garden is expanding, a move that will double the McHenry restaurant's capacity and the number of employees.
The McHenry City Council unanimously approved Monday evening a loan of $33,605 through its revolving loan fund, which was set up to encourage economic development and job creation.
The loan is "excellent way to use the revolving loan fund," said Alderman Victor Santi, pointing to the business's longevity and its role as an anchor on Main Street.
Perry Moy, the owner of the restaurant at 3917 W. Main St., had originally requested $30,000 to purchase equipment and $5,000 for working capital.
However, First National Bank of McHenry, which is underwriting the loan, recommended a higher amount to purchase equipment, furniture and fixtures but eliminated the amount for working capital, according to council documents.
The conditions of the loan are to be identical to the ones previously approved for Buddyz, Epic Cycle and most recently, Hidden Pearl Cafe. Moy would be responsible for repaying the five-year loan plus interest equal to the prime rate, which is currently 3.25 percent.
Moy is expanding his business into the neighboring lot, formerly McHenry Printing, the documents said.
Construction costs were estimated at $78,000.
The approval leaves about $18,000 available for lending in the fund, which was established in the late 1980s through a state grant.
Plum Garden was opened in 1965 with carryout only by Moy's mother, Connie Moy, and expanded in 1970 to include seating, according to the business's loan application.
Perry Moy took over the business in 1972.