Loan fund report: delinquencies continue but staff says funds available for new loans

At its July 8 meeting, the Community Development Block Grant Revolving Loan Committee received a status report on the loan fund that flagged several delinquent accounts but said staff is actively pursuing remedies and there remains money available for new loans.

Staff told the committee that Gina's Tax Solutions has not responded to outreach since tax season ended and the city has continued communication with the law department about legal action. Voyagers loans showed some past-due activity but staff reported a payment had been received after the delinquency was noted; staff attributed staggered payments to the borrower's multiple loans. Staff said Legacy currently has three loans that are more than one month past due and that the borrower has undergone a management change; staff is working directly with the new management team.

"We will continue to go after that, building," a staff member said about the nonresponsive borrower. The committee was also told the loan fund available balance on the packet was about $353,498 (staff noted this may be an older figure) and that roughly $200,000 held at HUD has been allocated for the coming year.

Staff said it had hoped to present another loan application at the meeting but that the application on file lacked sufficient documentation; staff expects that application and possibly two others to come forward in future meetings. Committee members were urged to refer qualified businesses seeking financing to the CDBG loan program.