Loan board approves $4.4 M loan to Benton Harbor schools

Benton Harbor Area Schools will be receiving an emergency loan from the state of Michigan in the amount of $4.4 million.

The Emergency Loan Board approved the loan at 1.85-percent interest with the first five years interest free. It will be repaid over 15 years.

The Emergency Loan Board also approved requests to restructure three previous loans.

• 2012 loan amount is $515,000.  The interest rate remains unchanged at 1.8-percent
• 2013 loan amount is $1,230,000.  The interest rate remains unchanged at 2.65-percent
• 2015 loan amount is $1,400,000.  The interest rate remains unchanged at 2.35-percent

All 3 will be repaid over 10 years with maturity in 2026. Debt service payments on each emergency loan will be restructured with the first 3 years as interest only.  The first principal payment will begin in year 4.