Members of the Vincennes Revolving Loan Fund board approved some re-visions to an agreement with businessman Roger Babb.
Babb is in the process of purchasing Babb lumber in Vincennes from other family members.
He is seeking 400-thousand dollars in funding from the Revolving Loan fund for operating capitol.
Vincennes Mayor Joe Yochum says initially the deal called for the city taking a lean out on the company’s equipment should they default on the loan.
Now, Yochum says the city will also take a second lean on the building and property to ensure they will get their money back.
Babb is planning to re-name the business Wabash Valley Wood Protection, Incorporated.
In addition to selling wood products for outdoor decks, Babb plans on adding a second product line for fire treated timber that will can be used in the construction of homes.
The business will continue to employ its current staff of 10-workers, in addition to adding one or two more positions in the near future.
Yochum added the Knox County Development Corporation is considering sharing half in the cost to loan Babb the money. KCDC like the city would be included on any lean signed by the city to re-cooperate any money lost should the company go under.
Babb is hoping close on the purchase of the lumber yard by late next week.