FirstMerit Bank is demanding that the All-American Soap Box Derby repay a $580,000. According to Board Chairmain William Evans, the bank sent the Akron-based non-profit a letter approximately three weeks ago asking for its money back. The financially strapped organization says that it doesn't have the money to pay the loan.

For the past two years, the All-American Soap Box Derby has gone without a title sponsor, which normally helps to provide income as well as spur publicity. Without a sponsor, the organization has been suffering. In the year ending September 2008, it lost about $400,000. Results for the current year haven't yet been tabulated, but President Jim Huntsman said "we won't lose nearly that much."

Their income has also dropped from about $1.6 million a few years ago, to $1.2 million today. Now, they have lost a line of credit that they counted on to pay bills in the off-racing months. The derby has already cut more than $400,000 from its budget over the last year. Huntsman said his salary was reduced by 20% and that some employees were reduced from full-time hours to part-time hours.

For extra money, the derby is doing more business online, and is leasing out its warehouse to store boats and recreational vehicles.

The derby has been making payments on the loan, but at times that has meant only paying the interest. Evans said that the derby has been feeling the effects of a harsh economic climate and tight credit.

While the outlook is bleak, both Evans and Huntsman say that they are confident that the derby will make it through the rough times. It is estimated that the organization generates more than $1 million for the local economy.