Tuesday, February 05, 2008

Another corporate welfare success story

Firm might default on county loan

Luzerne County may be dealing with another business development loan default.

Unified Medical Informatics has missed three monthly payments on its $50,000 loan from the county – prompting the county’s community development office to seek a status report from the company’s lawyer, county Community Development Director Andy Reilly said Monday.

County commissioners had approved the loan in July through a program designed to help start-up companies located in Hazleton and Wilkes-Barre innovation centers.

Unified Medical had promised to provide electronic office systems, software and support for medical offices...

Luzerne County’s community development office is already wrestling with another default of a loan to the former Gelpia’z Restaurant in Kingston. The county hasn’t received payment in a year and is owed $117,870.

It looks to me that these companies couldn't put together a business plan that they could sell to a bank or the capitol markets so they made some promises of "good jobs" because we have a great "work ethic" and got the politicians to back them. There was a reason why the banks wouldn't loan them any money.

No comments: