As someone who originated some of these loans, often in conjunction with a bank, I have to explain that Vicky is wrong about who is on the hook if these loans go bad.
With the Minneapolis Consortium of Community Developer loans the capital comes from the Federal Government, the bank and built up Consortium equity. The banks and the Consortium share the liability with no liability to the City. With the Minneapolis Economic Development Company (MEDC) loans, the bank, the SBA and the building owner participate. The City actually earns a small profit on this program in addition to fees that MEDC pays to the MCDA for staff support. For other small business loan programs such as the 2% loan program, the Capital Acquisition Loan program and others, the capital does not come from taxpayers and the risk is not taxpayer risk. I've been involved helping small businesses use these programs since 1982 when my friend, former West Bank tavern owner, the late Dave Lee helped me coordinate the purchase and renovation of 329 Cedar Avenue. The business finance division of the MCDA is a well managed group of dedicated individuals who have helped thousands of business start, grow and remain in Minneapolis, employing city residents and providing much needed goods and services to city residents. I wish I was invited to the breakfast too, but we don't need to cast any stones the MCDA business finance division. Victoria Heller wrote: > > Why weren't the taxpayers invited to the breakfast? After all, we're the > ones who co-sign all of the loans. > > When the borrowers default, the banks don't take the hit - we do! > <SNIP> > Vicky Heller > North Oaks > Cedar-Riverside Property Owner -- In cooperation, Erik Riese Seward: a great place to live, work, learn, and play! some pretty good restaurants too! ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ mailto:[EMAIL PROTECTED] ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
