American Recycling Services, (ARS), an Alliance, Ohio-based scrap recycling company, has been approved by the Alliance City Council for a $103,000 loan through the Urban Development Action Grant (UDAG) program.
The UDAG loan is part of a $257,000 loan package that includes loans from Huntington Bank and from the company’s owner. The money will be used to expand the scrap recycler’s operations through the purchase of equipment and the hiring of additional employees.
Joe Mazzola, the city of Alliance director of planning and development, says the total loan package equals nearly $257,000, with Greg Carpenter, the owner of ARS, contributing 10 percent, the city putting up 40 percent and Huntington Bank contributing the remaining 50 percent of the total loan.
The recycling company handles ferrous and nonferrous metals and industrially generated plastic scrap.
Carpenter says some of the money will be used to purchase equipment, including rolling stock, to improve service to its industrial customers. In addition to investing in equipment, the company says it also will add employees. Part of the money also will be used to improve the aesthetics of the facility.
According to a regional media report, the loan has a 10-year term and carries a 2 percent interest rate.
Carpenter says while markets presently are challenging, he is confident in the long-term viability of the business and expects the investment in equipment will allow ARS to strengthen its customer relationships.
“We have lots of business, and we are growing every day,” he comments.