I just got done running 4.1 miles in 2 degree weather (-14 with the wind chill). It wasn’t too bad. Once you get going, you get pretty warmed up with the exception of your face and ears. This morning I did a local talk radio program and explained the real facts about the Boscov’s loan deal. There has been a lot of bad information out there about this situation. I can’t tell whether or not these people are intentionally making up things about this deal or they just are ignorant of the facts, either way, they should not talk publicly about it until they understand what the truth is. Briefly, this is not a bailout in any way, shape or form. Boscov’s is applying for a standard loan through the Section 108 program of HUD. The fact that they were or are in bankruptcy has nothing to do with the criteria of the loan. And this is a loan, not a grant. These types of loans are done routinely in Pennsylvania and around the country. There is no special consideration given to Boscov’s and they have job commitments in addition to the payback of the loan plus 4% interest. The County Commissioners are not guaranteeing any local tax money, they are allowing the federal CDBG funds they annually receive to be used as collateral in this deal. They have a contract with the PA Dept. of Community and Economic Development (DCED) that tells them that the state will cover any default on the loan so that they will not loose the CDBG funds under any circumstances. The people who do not want to see any government loans in PA have a legitimist point that I tend to agree with, but that is a totally different issue.
- John
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