Buffalo Economic Repayment Corp.

13 Dec

BERC is such a failure that it doesn’t even work as a patronage mill.

A News investigation published in 2004 found that 736 companies borrowed $153.4 million from city development agencies between 1978 and 2003, and defaulted on 22 percent of money borrowed — more than double the national average of 10 percent.

Many of those bad loans continue to haunt the city.

Buffalo has to repay the federal government for defaulted loans made under the Section 108 program out of its annual block grant allocation. This year, the agency will send $2.9 million in block grant funds back to the U.S. Department of Housing and Urban Development.

Heaney says that BERC has loaned, on average $1.37 million per year since Mayor Brown took office.

This means that HUD is the biggest beneficiary of BERC largesse by more than double.

Penman also says that a strategic plan should be developed, one that he said should go beyond the agency’s current focus on small neighborhood business to include mid-sized firms with the capacity to add jobs.

Strategic planning?  That’s for places that don’t want to fail.

2 Responses to “Buffalo Economic Repayment Corp.”

  1. realbuff December 13, 2009 at 12:26 pm #

    To say that BERC is FAIL is wrong, in order to FAIL you have to TRY.

Trackbacks/Pingbacks

  1. How Many Employees Does it Take? « BuffaloBloodDonor - December 13, 2009

    […] Many Employees Does it Take? While Buffalo Pundit chastises the Buffalo Economic Renaissance Corporation for lack of strategic foresight in its […]

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