Commission approves no-interest loan plan for schools

Alleghany County Commissioners gave the Alleghany County Board of Education permission May 15 to make an application to participate in a Qualified Zone Academy Bonds (QZABs) program, which allows for repairs and renovations at schools through an interest-free loan.

Meanwhile, in conjunction with the application, a 10 percent match (be it in kind, financially or otherwise) would be required of businesses and private sources.

If the schools' application is accepted, it could result in half a million dollars to $2 million worth of facility projects at the four county schools. If the school system were to receive the full $2 million loan, it would cost the county about $146,000 a year over a 14-year period.

Addressing the commission, Superintendent Jeff Cox said, "After we got the feedback about the middle school and hearing the commissioners' interest in trying to take care of as many immediate needs as we can, this QZABs funding came to mind. Basically what this money is is a way to get money—in our county's case between $500,000 and $2 million in funds for renovations and repair projects. It cannot be any kind of new construction, but it could take care of a lot of our existing needs."

Making mention of the schools' budget, specifically the capital budget, Cox noted there is about $1.3 million to $1.4 million worth of facility needs and suggested that the QZABs funding could be something worth considering.

"This is money that would be available—up to $2 million—interest free," Cox said. "You can spread the payment over 14 years. It's like getting an interest-free loan over a 14-year period."

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