More Details On Lisbon's Revolving "Slush" Fund!!!!!

LISBON’S ACTIVE REVOLVING LOAN PROGRAM

I am writing this article in response to “DEEP THROAT” questions and concerns about the Lisbon’s Revolving Loan Fund.  I started looking into the Economic Community Development Department and the Revolving Loan Fund in 2011.  I submitted a Freedom of Access Act (FOAA) requesting a listing of all the active loans including the following information:  Date Approved; Original Amount; Business/Personal; Loan Fund; Business Project; Balance; Date of Last Payment; and Amount of Last Payment. 

The town refused to provide this information so I took the town to court for the information.  On January 5 2012, Superior Court Judge Mary Gay Kennedy ruled in my favor with the except for Balance; Date of Last Payment and Amount of Last Payment.  According to Judge Mary Gay Kennedy, the citizens of Lisbon are not entitled to this information.

The town finally provided me a listing of the outstanding loans minus the information I was not entitled to according to Judge Kennedy.  I will now attempt to answer your questions and concerns to the best of my ability.

1.        How many “failed” loans or write-offs have been in the past five years?  Since I have been looking into these loans only one and that was last year for the Lisbon Falls Florist.  The actual amount written off was never provided.  Must be National Security!!!!

2.       At present how many loans or percentage of loans are not current in their payments?  This is a hard one to answer but I will provide you all the information I am aware of.  There are currently eight active loans.  Of these eight, three of these loans are past their closure date and still on the list.  One business has been out of business for at least two years but is still active on the list.  There are actually four active loans which are not past due.  Of course, you must understand there is no way to tell how current these are on payments.

3.       Who monitors the current to facilitate positive outcomes of payment and to be aware of potential failure?  I have a copy of the Program Guidelines and Operating Procedures for the Economic Development Revolving Loan Fund.  I have asked the same question of councilors too and as far as I can determine NO ONE REALLY KNOWS.   

Lisbon Finance Director Jessica Maloy

 

The Finance Director, Jessica Maloy should be the one for receipt of the money but the Economic Community Development Director, Scott Benson is the individual who is suppose to be monitoring the program.  The supervisor of both of these individuals and the Chief Administrative Officer for the town is town manager, Stephen Eldridge.

 Lisbon Town Manager Stephen G. Eldridge

4.       What STAR CHAMBER or individual decided approval of loan request?  There is a Lisbon Advisory Loan Committee which consists of the town manager; two councilors; Finance Director; Legal Advisor; Banker; Business person at large; and the Economic Community Development Director.  This advisory group makes recommendations to the town council who has the final approval of all applications.

 Lisbon Economic Developement Director Scott Benson

5.        What is the criteria to be approved?  Do they use the same criteria as credit unions for approval?  This is too lengthy to answer in this article but it is outlined in the Program Guidelines and Operating Procedures for the Economic Development Revolving Loan Fund.  However, I can tell you these loans are suppose to be secure with collateral.  One of the many problems, as I see it, is that there is no one monitoring these loans on a daily basis.  This allows for a business to go out of business and all the items used as collateral to disappear before the town can take legal action to recover the loss.  This is what has happened to the one loan that has gone out of business.   

6.       Who is accountable to answer these questions and to be responsible for the loan program?  The individual overall responsible is the town manager, Stephen Eldridge and the daily monitoring should be Economic Community Development Director, Scott Benson. Based on Judge Kennedy’s decision, a concerned citizen will not be able to get any information out of these individuals.   

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"Sergeant Schultz"

It will be like Sergeant Schultz “I know nothing” and it would be accurate.  If we had councilors who put the people and communities best interest first, the people could get the requested information from them.  Never Happen!! 

I hope I have answered all your questions and concerns.

All of this information apparently falls under National Security.

Larry Fillmore

Concerned Citizen