NATCHEZ — The Adams County Board of Supervisors will get their $1.2 million payroll loan from Britton & Koontz Bank for the price of approximately $8,300 in interest.

County Administrator Joe Murray said he hoped the county would receive the loan by early next week at the latest to make the next payroll. Repayment and interest on the loan will be due March 15.

Supervisors unanimously approved to take out the loan with B&K, which provided the lowest interest rate of three bidders. The board met Monday for the scheduled bid opening.

B&K offered an annual interest rate of 1.82 percent for the approximately 140-day loan. Murray said the county’s interest payment will be affected favorably by the fact that the loan will be paid back in less than a year.

Other bids from United Mississippi Bank and Concordia Bank had bid interest rates of 2.25 percent and 2.85 percent, respectively. Murray said he recruited two other banks for bids, but only the three participated.

District 2 Supervisor Henry Watts asked Murray to find out if any additional fees would be attached to the loan transaction, such as for a filing loan application.

Supervisors voted Oct. 13 to take out the loan in order to be able to fund payroll until taxes roll in.

Murray said the type of loan the county will receive will not be a “tax-anticipation loan,” which can be used for any type of expenditures.

The loan the county will take out, which is outlined in Mississippi Code 11-19-21, under the heading “Emergency Expenditures,” requires that the county spend the money on previously outlined expenditures.

Payroll for October, November and December will cost a total of approximately $1.4 million, Murray said.

Unexpected shortfalls in tax revenues and a somewhat unexpected payment of approximately $550,000 on a road bond note contributed, among other things, to the need to take out the loan, Murray said.

He said B&K requested financial paperwork including audits that he has not yet presented to the bank.

“We need this money here by the third (of November) or the beginning of next week,” Murray said.

District 5 Supervisor S.E. “Spanky” Felter made a motion that the board accept B&K’s bid but give Murray authority to accept the next lowest bid if B&K takes too long to hand over the $1.2 million loan. The board voted unanimously in favor of Felter’s motion.