WEST CARTHAGE — The Development Authority of the North Country’s board of directors approved a $1 million line of credit Thursday for Carthage Speciality Paperboard, which is in need of cash flow after it spent more than expected on the $3 million expansion at its 30 Champion St. facility.
The authority will ask for loans from multiple agencies to pay off the six-month line of credit. On Thursday, the board approved a $250,000 permanent loan toward the sum. Four other entities, meanwhile, will be asked to make contributions this fall toward the remainder of the balance: the Jefferson County Local Development Corp. ($200,000), North Country Alliance ($225,000), village of Carthage ($100,000) and North Country Economic Development Loan Fund ($225,000). The latter fund was established Thursday by the authority, according to an agreement made with the New York Power Authority. The board in charge of the fund includes representatives from DANC, the Power Authority, North Country Alliance and Empire State Development.
All low-interest loans would be offered for 10 years except for JCIDA’s, which would be for five. As the lead agency, DANC would collect loan payments from the company and then pay off debt owed to other entities.