City Going After Unpaid Business Loans

http://www.insidearm.com/news/00008683-city-going-after-unpaid-business-loans/

The loans, ranging in value from $15,000 to $300,000, were made to businesses to spark economic development in the city and were not considered grants. The mayor had intended to publicly shame an even dozen companies, but one negotiated a deal before the press conference.

"If they’re going to take money from us, they understand it’s public money and they’ve got a public responsibility, as far as I’m concerned, to honor their commitment to us," Mayor Finkbeiner said, according to the <i>Toledo Blade</i>.

The mayor noted that around 22% of the loans they make to businesses default. The mayor said that was a respectable number, given that businesses often turn to the city as a last resort.

The city makes the loans at 4% annual interest for a period of seven years.