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.