Soul of the South is facing new money woes.
The Arkansas Economic Development Commission sent a letter to CEO Doug McHenry last month informing him that the company owed payment on a $250,000 loan from the Governor’s Quick Action Closing Fund that came due June 5. The AEDC granted the loan in December, bringing the total state investment in the company to $1.75 million.
According to the promissory note signed by McHenry, SOS would have had to pay off the loan earlier if it raised a certain amount of money in other loans or investments. That figure was redacted from documents provided to Arkansas Business under the state Freedom of Information Act.
A spokesman for AEDC said the loan remained unpaid last week.
McHenry said in March that he needed to raise $250,000-$500,000 to make it through the next three to four months. Within a matter of weeks, the company’s board considered “winding down” operations but didn’t reach a decision. One of its directors resigned June 30.
McHenry deferred questions to secretary Bill Campbell, who had not responded by press time.