Responsibility shown with loan

Maybe it’s human nature.
But whenever local government officials are talking about relatively small expenditures or investments, they are scrupulous.
Yet when the same officials are talking about big bucks — the types of local tax dollar loans that reach up to six figures — the scrutiny is less rigorous.
You can argue forever about the wisdom of public-private partnerships, tax incentives, and investing public dollars as the “bank of last resort.” But the reality is, those sorts of deals have been with us for more than 20 years and are here to stay.
The question at this point is not whether such arrangements should exist, but how they should be structured to protect the taxpayer.
It’s in that context a relatively modest loan of $15,000 from a city of Portland revolving loan fund ought to be judged.
And it looks as if the city is doing a pretty good job.
We have no idea how well the 3D Recycling LLC business plan is going to work out in the long run.
But the city committee responsible for making a loan to the company did its best to make an informed judgment.
Tough questions were asked. Lots of them.
Financial records and a business plan were scrutinized. Liens were put in place to protect the taxpayer.
And conditions were set for an environmental clean-up if necessary.
Is there still a risk?
Sure there is.
There always is in situations like this.
What’s important is that the city’s committee behaved responsibly, encouraging business development while at the same time being smart stewards of public funds.
Now if only the folks involved in larger public investments in business development would be so diligent. — J.R.

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