Why Did Former AC Mayor and Council OK $3 Million Advance for Loan Program?

0 (1)From AP NEWS: Atlantic City is suing to get back $3 million it gave to the company that has failed to run the Community Loan Program, launched in 2013 by Lorenzo Langford, the mayor at the time.

The company is partially owned by relatives of a former Langford aide, The Associated Press found. The company used most of the city money to buy a finance firm in Tennessee that has since had management of more than $6.6 million in government-backed loans taken away by the Small Business Administration.

Arch Liston, who came in as Atlantic City’s business administrator along with Guardian last year, said that the new administration became aware of an issue when it realized it hadn’t received reports ZeMurray was supposed to send them about the loan program.

“You can go into almost any bank and get a small business loan. It was just unusual that there was city money that was fronted for this,” Liston said. “It’s just highly unusual he had this kind of money fronted.”

Read more here: http://www.miamiherald.com/news/business/article22502817.html#storylink=cpy

 

 

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