The Urban Enterprise Zone (UEZ) program in the city of Vineland, New Jersey, has reported that two debtors have filed for bankruptcy protection. In addition, it shows a number of other debtors on a delinquency report. None of them are filing for bankruptcy at this stage, and some are working with the Vineland to map out their repayments.
Vineland has lent out almost $150 million over the past 26 years. Most of those loans have been repaid in full. In those 26 years, however, $4.9 million, or 3.2 percent of all loans, have not been recovered. By lending institution standards, this is considered a good rate.
Vineland’s neighboring city of Millville has not had the same success. It has lent out only about $8 million and has failed to recover almost 10 percent of that. The New Jersey governor, Chris Christie, has stopped state funds being sent to UEZ. However, Vineland has grown its own pool of funds and has $70 million available to keep the program running.
One of the debtors has a venue for concerts and has borrowed more than $800,000. It has fallen behind in repayments since November 2010. The company is now working with the city to create a new plan of repayment and make sure its taxes are up-to-date. Still, another has avoided bankruptcy despite being behind in payments.
While avoiding bankruptcy and keeping up with payments is good if you can do it, some businesses are simply unable to. Bankruptcy can seem like a last resort, but it can be a useful tool for reorganizing your debt and creating a payment plan that will work for you.
Source: Thedailyjournal.com, “UEZ loans pay off for Vineland,” Kristi Funderburk, 06 May, 2011