By EDWARD HUSAR

Herald-Whig Staff Writer

Quincy's Economic Development Loan Committee has agreed to amend the contract language for two outstanding loans to Midwest Patterns so the contracts reflect the names of two new guarantors.

Chuck Bevelheimer, director of planning and development, said this action was taken because Tom Tushaus is retiring as president of Midwest Patterns, and the company asked to have his name removed as the personal guarantor of both loans.

After meeting in closed session Wednesday, the committee approved the company's request to list Dennis Frericks and Jeff Tushaus as personal guarantors of the loans.

"Dennis and Jeff are taking over the responsibilities of the loans and running the company," Bevelheimer said.

"We reviewed their financials and how the loans are collateralized and felt comfortable with removing Tom from those two personal guarantees and adding Dennis Frericks and Jeff Tushaus."

One loan for $469,424 was awarded to Midwest Patterns in 2005. A second loan for $150,000 was issued earlier this year. Bevelheimer said both loans have 3 percent interest rates and are being paid off on schedule.

"Both loans have good payment records," he said.

As of August, the first loan had a balance of $292,174, while the second loan had a balance of $138,340, according to loan records provided by the city.

The only change being made at this time is to list new personal guarantors backing up the loans -- a step that's required by the city's lending policy.

Having a personal guarantee on a loan "makes sure that when you make a loan that the loans are collateralized and secured with adequate financing in case the company could not make payment -- that there's a way for the city to get repayment from the individuals who are guaranteeing it," Bevelheimer said.

"It's a security blanket for the city."

-- ehusar@whig.com/221-3378