SC city tries to get handle on default rate

COLUMBIA, S.C. (AP) — Almost one-third of the commercial borrowers who got publicly funded loans from the city of Columbia have defaulted, and city officials say they’re investigating whether the loans can be restructured to make them more affordable.

The (Columbia) State reported (http://bit.ly/rbkINI) that the city provided information on its 30 commercial loans through Aug. 31 in response to an open-records request. It says the amount of the defaulted loans is about $817,500. The outstanding balance on the loans is $2.7 million.

The U.S. Commerce Department suspended the program in May until the city explains how it spent the money.

City Manager Steve Gantt says the loans in default are being reviewed to determine if they can be restructured to make them more affordable to borrowers or whether to seek liens.

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Information from: The State, http://www.thestate.com