To help HomTex expand its production of face masks during the COVID-19 pandemic, the City of Cullman will consider an economic development agreement to provide a loan to the company.

During an emergency meeting Monday afternoon, the Cullman City Council gave notice of a proposed action to consider a resolution to enter into a loan agreement that would provide additional funding from the city to HomTex.

Monday’s emergency council meeting gave the required seven-day public notice that is needed before the council considers action on the loan during next Monday’s regular council meeting, said Cullman Mayor Woody Jacobs.

Amendment No. 772 of the Alabama Constitution allows municipalities to use public funds to enter into agreements with companies that will have a positive economic impact on the community.

The agreement that will be voted on next Monday would have the city make a loan to the Cullman Industrial Development Board, which would then make the money available to HomTex to purchase and install new equipment necessary for the production of disposable surgical masks to be used in the fight against COVID-19. The loan will be in the amount of $1.5 million at a 2.2 percent annual interest rate. 

HomTex announced last Friday that it will be able to produce 100,000 washable, reusable masks per week to begin with. The masks are not approved by the Food and Drug Administration for healthcare workers; however, state and federal officials are working with HomTex to get FDA approval for hospital use. They would not be used by front-line medical workers, who require a higher level of protection. The loan the city council is considering would not be used to create these masks, which are already in production. 

HomTex has four plants, located in Cullman, Tennessee, North Carolina and South Carolina. The loan will help the company move into production of disposable face masks to help people fight against the disease while producing around 80-120 jobs at the company’s facilities, said State Sen. Garlan Gudger.

“In this pandemic that we are in, we are able to help the world, help Alabamians, help the nation and help everybody throughout this community through a local industry that’s here,” he said.

For more information about the DreamFit face masks, visit dreamfitfacemask.com.