The Albert Lea City Council on Monday approved a $150,000 loan with an Albert Lea business that could create 15 to 17 jobs over the next five years.

The loan, expected to be used for equipment, is contingent on Albert Lea Diesel & Chrome creating eight full-time jobs in the next two years. The loan interest rate is expected to be 2.25 percent, payable over seven years.

“If job creation and retention goals are met per the agreement, the amount of $50,000 of the original $150,000 loan will be forgivable,” Albert Lea City Manager Chad Adams said in a report.

The business has already grown. It started with three employees in May 2017 and now has nine.

Owner Jeremy Hohansee said Albert Lea Diesel & Chrome, at 77783 209th St., is looking to add four technicians and service and parts managers.

He noted he has worked on diesel engines for more than 20 years and the city is experiencing a loss of services with the closing of nearby Rueter’s. Hohansee raised the possibility of hiring two tractor mechanics who used to be employed at Rueter’s.

To Hohansee, the business has a large, loyal and local following.

“We’re swamped all of the time,” he said.

Albert Lea Mayor Vern Rasmussen Jr. thanked Hohansee for the work Albert Lea Diesel & Chrome does.

“Entrepreneurs like you are what we need,” he said.

Hohansee noted he is donating newer engines to Riverland Community College and hopes to someday employ some of the school’s students as technicians.

The business services commercial trucks, diesel vehicles and trailers and offers emissions work, trailer repairs and RV services. Computer diagnostics allows Albert Lea Diesel to troubleshoot problems and offer repairs for oil leaks, brake systems, engines, drive line service and other problems.

“We’re a lot more specialized than, say, the truck stop,” he said. “We do complete engine repair.”

Adams noted as part of a business plan, Hohansee could build onto his existing site or tear it down and build a new structure.