King Morton’s Hall of Music will be the first business in Presque Isle to take advantage of a new city-run loan program for small businesses.
Chris Morton, owner of the instrument and music lesson shop, has been working at the 412 Main Street building in downtown Presque Isle for 13 years, going back to when it was under different ownership and a different name.
With the building for sale and Morton five years into the ownership of King Morton’s, “It makes sense to buy the building,” he said. “All of us here at the shop are really fond of the building.”
Morton has secured financing from Machias Savings Bank for 75 percent of the cost of the building, and he also was approved for a $20,000 loan from Presque Isle’s new micro-loan program to make the 25 percent down payment on the property.
The micro-loan program was created earlier this year to offer smaller loans to entrepreneurs and small businesses in amounts from $5,000 to $20,000. The Presque Isle Development Fund committee recommended Morton’s application for the loan, and the City Council approved the loan at its May 3 meeting.
Under the arrangement, the $20,000 loan will be offered at a 6 percent interest rate for six years, with Morton personally guaranteeing the loan and taking out a business insurance policy.
Morton said he wasn’t able to cover the whole down payment at once, but wanted to move on acquiring the building to improve the music shop’s position in the long-term. His loan officer at the bank suggested considering Presque Isle’s micro-loan program.
“We were worried the building might get sold to someone else,” Morton said.
The micro-loan program allows the city to finance up to 75 percent of a project, up to $20,000. The loan recipients are required to submit a business plan and participate in business training offered by the New Ventures Main group.
Morton, a lifelong drummer, opened King Morton’s Hall of Music in 2012 following the closure of Northern Kingdom, the former music shop where he and two others worked. The store now sells guitars, drums and other instruments, and offers youth and adult lessons in drums, guitar, piano and, more recently, cello, flute, violin and vocals.
