Attribution: http://www.flickr.com/photos/drb62/ / CC BY-SA 2.0
The New Hampshire Business Finance Authority has guaranteed to back 75% of a $250,000 bank loan to a local newspaper. The “New Eagle Times” is owned by Eagle Printing & Publishing, a group from Pennsylvania which bought many failing newspapers on the brink of bankruptcy in September. The New Eagle Times had ceased operations on July 10th until it was acquired and resumed printing on October 12th.
Senior credit officer at the New Hampshire BFA said, “We were approached by the bank to provide a guarantee for a business they felt was going to have some success, and hire back some jobs that are critical to the area. We agreed with the bank’s assessment, and we agreed to present it to the governor and council.”
The whole deal has drawn ire from some people, including former Claremont City Councilor Jim Sullivan. “Because the New Eagle Times is now beholden to government officials for what appears to be crucial financing, this could prove to be a conflict of interest for the newspaper,” he said.
The loan will be adjustable rate, starting at 4.99% and changing monthly.
Read further details here.
Sources: BigGovernment, Nashua Telegraph
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