The Grand Forks Growth Fund approved a 90‑day deferral Sept. 15 for Safety Spect’s previously restructured loan, citing continued delays in accessing a federal ARPA H grant the company expects to draw down. The committee agreed to allow interest to continue to accrue (reported at 6 percent) and to extend the loan term by three months.

Why it matters: The modification was framed by staff as a short‑term cash‑flow accommodation while Safety Spect completes federal grant drawdowns needed to meet milestone spending. Staff reported the borrower made the first post‑restructure payment on time and has communicated regularly with loan administrators.

Details and discussion: Staff described the background: earlier in 2025 the committee converted an approved balloon structure into 12 monthly equal installment payments to help the company manage cash flow while awaiting grant funds. The company has since received final approval for the federal ARPA H grant, but payments are delayed, stretching the company’s cash reserves. Growth Fund staff said the borrower proposed a 90‑day payment deferral and agreed that interest would continue to accrue during the deferral and that the term would be extended by three months.

Committee members asked whether the deferral period would be counted from the payment due date (staff said the payment schedule is due the 22nd of each month and the three months would be counted from Sept. 22) and requested documentation of the grant award and conditions; staff said they would seek the award letter and continue communications with the borrower. Members cited the company’s ongoing communication and timely earlier payment as reasons to approve the short deferral. The committee approved the modification; the vote recorded six in favor with one dissenting and one recusal noted.

Next steps: Staff will document the specific deferral dates with the borrower, obtain the grant award letter for file, continue to monitor milestones, and report back at future meetings.