The Winnebago Economic Development Authority (EDA) called a brief special meeting on Wednesday, Feb. 21, at 5 p.m.

The purpose of the meeting was to make a fourth amendment to a promissory note which was originally issued to Jessica Schonborn in March of 2007 in the amount of $35,000.

“Jessica Schonborn is in the process of selling her building contract for deed,” EDA specialist Jennifer Howard explained. “There is currently a lien against the property with an EDA loan.”

Howard continued, “Since the building would be sold via a contract for deed, (Schonborn) is not required to satisfy and have liens against the property removed until the contract is paid in full and she has to deliver the deed.”

Schonborn, the owner of Razor’s Edge beauty salon in Winnebago, originally had a loan from the EDA Revolving Loan Fund with a balloon payment scheduled for April of 2024. She was requesting that the EDA amend the promissory note to remove the balloon payment portion. She would then continue making payments on the loan.

The amended promissory note would push back the balloon payment another five years at a five percent interest rate.

The EDA was amenable to Schonborn’s request.

“We’re extending the terms of the promissory note to continue the regular payments with our security in place – I’ll make that motion,” EDA member Doug Hill said.

His motion passed unanimously, thereby amending the promissory note so the principal balance due, as of Feb. 21, is $23,597, with the maturity date extended to March 1, 2029.

Schonborn explained that she was requesting the amendment to her promissory note because she has agreed to sell her building on Main Street to a man from Lakeville.

“We have agreed he would like to do a contract for deed,” she told the EDA. “He will give me a $15,000 down payment – after I get that $15,000 from him, after we’ve closed, I’m going to put it directly on this loan. I really hope to get it paid off as fast as possible.”

Schonborn clarified that she will still be operating her business in Winnebago.

“I’m still staying there (on Main Street) – I’m just going to rent the space from him,” she explained.

Howard concluded, “I think this is going to be a good thing for Winnebago. It’s going to benefit two businesses.”