LAKE GEORGE — The sweeping overhaul of Lake Champlain Lake George Regional Planning Board that began earlier this year resulted Thursday in the organization’s new leadership reinstating its main business loan fund.
The fund, which loans money to high-risk businesses, was suspended in June as a new chairman and director sought to sort out issues that had arisen under the director who left amid criticism weeks earlier. Questions had been raised about a number of loans, including loans to family members of Planning Board leadership, and about collection efforts and organizational issues.
With new policies, practices and staff in place, as well as an influx of cash from stepped-up collection efforts on existing loans, the board voted Thursday to begin taking applications from businesses in need of capital.
Board Chairman David O’Brien, the town supervisor from Hampton, said new board Director Beth Gilles has been able to get borrowers to “catch up” on their payments.
With increased collection efforts to get borrowers back on pay schedules, one fund that had a balance of about $50,000 over the summer has grown to $458,000, said Washington County Treasurer Al Nolette. Nolette has been serving as the organization’s bookkeeper since the spring leadership purge.
“That’s from collection efforts, staying on top of the loans,” he said.
The board also wrote off seven loans totaling $339,236, six of them from Warren County and one from Essex, as the companies have gone out of business, gone bankrupt or both, O’Brien said.
“We’ve gotten everything we can out of these. There’s no money left to collect,” O’Brien explained.
The board is also trying to sort out other open loans, such as to one business that has four loans. Eight other loans are listed as “doubtful” in light of the business operators’ financial situations.
“It’s been a challenge to make sense of the numbers, what happened and why it happened,” O’Brien said.
Seven additional loans have been “retired” as the borrowers paid them off, and the amount owed on the loans has dropped $300,000 to $2.8 million since the board shakeup.
Nolette said one of the changes to the loan process will involve ensuring that sufficient collateral is available. Collection on a number of older loans was hindered by “position” in multiple mortgages on property, or when vehicles were used as collateral.
O’Brien said the state Comptroller’s Office auditor who arrived at the Planning Board’s office in Lake George in the early summer continues to work on a review of the books. That audit began after a number of issues with the loan fund were brought to light by Queensbury resident Travis Whitehead and a Post-Star review earlier this year.
The Regional Planning Board, which assists communities and organizations with planning, grants and economic development, oversees its own regional development corporation that has multiple federally funded loan funds.
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What really peaks my attention is seeing Thompson’s garage on the list.
My question is do they still own the garage they have for sale for half million dollars?
If so is there a lean against the property?
Who’s collecting the rent on the new occupant? Is any of that money being used to pay off the loan?
But even more concerning is it possibly the same family using the space under a different business name?
That loan amount would’ve covered buying a used big rig tow truck. Is that possibly what happened?
Not accusations because I don’t know, they are just my thoughts & questions that came to mind after seeing Thompson’s Garages on the list.
I hope that since they’ve started loaning money again they have better standards & a special requirement if any members family is involved. Just the family member sitting out of the vote isn’t enough!
Bank not taxpayers should be in the loan business !
We the People did not authorize our money to be used as a slush fund for risky ventures!
There’s likely good reason why the bank wouldn’t loan them money because God knows loans are given daily to those who can barely afford them in the first place. Such as credit cards vehicle loans etc So if they can’t get a loan then there’s likely good reason.
Now if you were to step up, loans should only be given to those who have security.
Loans should be structured so they layout what’s getting paid to whom where checks are written directly to the vendors. At least a majority of the funds. If they are paying off an object it should be used as security.
Plus maybe the board should do more than just write checks. Maybe they should step up & monitor money in money out & educate the borrower in financial responsibility.
Require a course in money management if they want the loan they must complete a required course before receiving funds.
Once checks are written they must open their books for audit should one be requested etc etc.
Hopefully some of these things are already required but I’m not so sure.
I think there should be an oversight investigation into the former members of this loan authority. There is clearly enough evidence of this fund being used to benefit a small number of individuals, some of whom had direct connections to loan board members. This was a corrupt operation and without significant daylight will have a corrupt coverup. Bring in the Comptroller now.
As indicatdd in the article the comptroller office has been conducting an audit..
Into the loans, but what about into the loans approved by and for family members?
Like the beauty salon that was never opened for instance? Unless of course they have corrected that since the heat was put forth.
I’ll second the motion!
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