The Central Oregon Intergovernmental Council sees its first sizable losses in 30 years after four business owners default on loans managed by COIC.
The COIC board has elected to write off the four loans, losing a total of $507,948 — close to 10 percent of the council’s loanable funds. Two borrowers filed for Chapter 7 bankruptcy protection, while the other two went into foreclosure on properties they’d purchased with the help of COIC loans.
Public lending agencies like COIC look to spur economic development by providing loans to new or growing businesses that are unable to obtain full financing from private banks. Jim MacKinnon, loan manager for COIC, said public lending agencies around the country are experiencing a similar increase in loans gone bad.
Read the full story at The Bulletin.