Sep 27, 2004
Detroit's Downtown Development Authority (DDA) approved a $200,000 loan to three shops opening near the new Compuware headquarters. But what a loan!
The terms of the loan forgive the interest in any year that the stores' gross sales, above 275 million dollars, are less than the amount needed to pay the interest!
Not only that, if the stores manage for three years in a row to evade interest charges – the whole loan is forgiven!
It's not very clear why Nike, Athlete's Foot, and JB's are so poor as to need any sort of loan in the first place.
But for a loan that will be forgiven if we say we can't pay – hey, where do the rest of us sign up?