Digging Deeper: Closer look at the multi-million dollar AAR bank - WREX.com – Rockford’s News Leader

Digging Deeper: Closer look at the multi-million dollar AAR bank loan

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ROCKFORD (WREX) -

Despite no state money coming in, construction on the AAR project will continue.

That's because five banks came together Wednesday to sign a loan worth $17 million.  

"We talked about it and said you know we really need to make sure this project move forward," said Thomas Walsh, President & CEO of Northwest Bank.  "We can't really afford to have any delays in the construction."

Alpine Bank and the four others began to talk about helping the airport out a few weeks ago.

"What's impressed me about the project is that you're having cooperation between various groups of government and municipalities to work together to bring the project together," said Ben Barton, the Chairman of the Board for Byron Bank.

13 News has learned new details of how the interest rate on the loan will play a factor in future talks with the state.  The agreement signed by the banks is essentially a $17 million line of credit for 360 days.  It has a variable interest rate, meaning it's the prime rate plus one percent.  So for instance, Wednesday's prime rate plus one percent was 4.25 percent.  The interest rate will remain that way until the Federal Reserve decides to raise or lower rates next year.

This is significant because RFD Executive Director Mike Dunn said he is expecting the state to cover the interest owed the banks.

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