Flint City is trying to resurface again by advancing low interest loans coming from the state and federal governments to small business concerns.

The success is not without major failures. The problem is that the loan staff lacks the drive and aggression to collect dues. The federal government in all probability would deduct the funds advanced from any future grants. This would mean availability of fewer funds for the business houses that badly need them.

The two prime loan plans are Flint Area Enterprise Community and Flint Economic Development Corporation. The former focuses on the poorest regions of Genesee County stretching for 10 square miles. The second one is for all eligible business concerns.
Mayor Dayne Walling who is also the president of EDC board noted that during the recent months important steps have been taken to make betterments to the loan implementation of the loan programme by engaging professionals from the banking and legal stream for proper guidance.

The officials are anxious to stop abuses like the fraud enacted by Joseph P. Giacalone and Daniel Robin. It was one of the noted biggest cases of stealing of public funds. The accused did not contest allegations of pocketing $1.2 million. They had taken the loan to build a factory that never materialized. It was of course an exceptional case of abuse but officials admitted that there are many other loans they are having trouble with.
Bankruptcy was declared by Oil Chem (oil recycling firm) on 12th Street, two weeks following the withdrawal of their last loan amount ($250,000) that had been granted in January last year. Together with interest the state is owed $266,000. The state will now have to wait for a payment plan to be chalked out by the court as the bankruptcy case proceeds said Robert Goodman of Flint Area Enterprise Community.

Scott Kincaid, councilman said the loan should never have been given the green signal especially because at the time of granting loan the company had been behind in their taxes. The owner of Oil Chem, Robert Massey was not available for comment but a message was kept with his lawyer.

Another unit, Hinky Dinky Market owes Flint about $200,000 on a loan ($376,000) it had taken in 2001. It is currently facing foreclosure.

The unit that owes the most is Rocky’s Pizza. It has two loans pending and since 2008 November had not made any payment. $267,000 was borrowed but now the due amount is $285,000.

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