Results tagged “loans”

There's been talk of big apartment complexes, bought by private equity firms, being at risk for mortgage defaults, after the buildings' new owners had unrealistic expectations for rent increases. Now, the NY Times reports that Senator Charles Schumer wants to make sure certain buildings stay affordable given that 60,000 lower income residents may be affected. He also wants the SEC to investigate the loans, "The entire predatory equity enterprise is a house of cards built on a foundation of fantasy and greed. The whole thing collapses when there is any depreciation, or even a leveling, in the property’s value, which is the reality we now face. You would think these deals would’ve stopped a year ago, but they are still going forward."

The Post speaks another subset dealing with the subprime crisis: Loan sharks. Benny the Loan shark who, like the banks, has "made loans to subprime borrowers in danger of defaulting." He says, "I'm not really worried about people borrowing money from me, what I worry a lot about is whether they'll pay it back...I'm going to have to start collecting collateral - you know, like jewelry, wedding bands, necklaces and family heirlooms." His rates: $50/week in interest on loans of $100-200. Tanda, a "mid-level loan shark" has raised lowered his interest rates by 50% recently--"$200 a week on a $500 loan and $400 a week on a $1,000 loan"--and says, "Wall Street should take a lesson from me, I never lend what I can't afford to lose - and I lose very little."

Earlier this year the Zoning and Franchises Subcommittee voted 10 to 1 on a proposal that would create a loan program for displaced small businesses. Now NY1 is reporting that the Upper Manhattan Empowerment Zone Development Company is offering $750,000 in loans to the dozens of "businesses being uprooted by a controversial rezoning plan." The businesses being forced off of 125th Street can now apply for the no-interest loans. According to locals there are around 70 establishments being displaced; if they relocate "within 10 blocks north or south between Fifth Avenue and Fredrick Douglas Boulevard" they can receive a loan up to $50,000, and by staying put for two years the loan will be forgiven.