HUD: Providence must come up with $1.3M for bad loansDecember 6th, 2013 at 8:32 am by Ted Nesi under Nesi's Notes
By Dan McGowan
PROVIDENCE, R.I. (WPRI) – Rhode Island’s capital city must recover or repay more than $1.3 million to cover 16 taxpayer-funded loans and grants that never should have been approved, the U.S. Department of Housing and Urban Development (HUD) said Thursday.
All told, the city must come up with $1,337,180 to make good on three loans and 13 grants issued by the Providence Economic Development Partnership (PEDP), a quasi-public agency that oversees the city’s small business loan program. The city can recover the money from loan recipients or pay back its revolving loan fund using non-federal tax dollars, according to a letter issued by HUD.