Friday, August 7, 2009

How Could ADICA board member also receive loan from city department?

"ADICA board member also received loan from city department"

I just read the above headline on the WALB website. I am investigating, and this is what I know so far:

Ms. Woods was awarded a $100k loan through a federal grant program through the US Economic Development Administration. These funds were part of a revolving loan program initially funded after the Albany floods. The disbursement of those funds is handled through the City's Department of Community and Economic Development and their loan committee.

A lot of the initial flood loans from the EDA went bad, but as people have started to repay their flood loans the revolving loan pool has built back up. The federal funds are to be used for small businesses that cannot obtain traditional bank financing, but show the ability to repay a given loan. The loans are made for working capital, equipment, fixtures, etc. A recipient must show proof of a bank's denial of a traditional loan.

The EDA loans are approved by a local loan review committee which includes members from at least two local banks and two institutes of higher education. I have some names of members, but I will wait to publish the list when I receive all members' names, so no one is left out. This committee would have approved the loan.

This particular loan did not involve direct payments to the recipient. The recipient submitted invoices from vendors to be paid. There is still about $11k that can be drawn down on the $100k loan. Albany Community Together (ACT) handled the underwriting of the loan.

My understanding is that ACT and the loan committee were made aware of the $50k facade grant, and required documentation to be sure there were no duplicate invoices being paid.

I will provide more information as I am able.

2 comments:

Peter said...

Bob.... How about the $50K to the board member. Once again there is a hangup on the development process until ADICA sanitizes its reputation.

Seems clearing this $50K up is a step in that direction.

Any update yet?

Thanks....Peter Studl

Peter said...

previous comments? do u not publish all comments not offensive to the public? u can email me back... i'm just writing an article abt Albamy blogs and that would b an interesting twist. best...... Peter Studl