Brick City Blog

Brick City Blog has confirmed that State Rep. Ernie Leidiger’s business Jelco Parts, Inc., has defaulted on its $500,000 government guaranteed Small Business Administration (SBA) loan.  Based on the information we already knew about Leidiger’s businesstroubles, this is not a surprising revelation.  Under the terms of the Patriot Express loan program that Leidiger took advantage of, the federal government guaranteed up to $450,000 of the loan.  The final amount that the government ended up paying related to this default was redacted by the SBA.

What is surprising is how quickly Jelco Parts went into default after receiving the loan.  SBA documents show that Jelco Parts, Inc. was considered in default by its lender, Crow River Bank, by July 25, 2010.  That’s only 11 months after the loan was finalized (August 26, 2009).  Typically, loan payments have to be delinquent for at least nine months in order for a loan to be…

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