Little Payoff for Iowa's Business Subsidies
Unpaid loans, and 21 jobs out of 1,388 promised
DES MOINES — At least 44 companies owe Iowa nearly $8 million for loans they received in exchange for a promised 1,388 new jobs that never materialized.
The companies, instead, produced a total of 21 jobs, an Iowa Watchdog analysis found.
As of the end of June, the state wrote off $2.7 million in bad loans made to 16 of the companies, leaving taxpayers on the hook to cover the debt. The remaining businesses either face lawsuits from the state to recoup lost funds or have been ordered by a court to return the money, the analysis showed.
Hide Comments (0)
Editor's Note: As of February 29, 2024, commenting privileges on reason.com posts are limited to Reason Plus subscribers. Past commenters are grandfathered in for a temporary period. Subscribe here to preserve your ability to comment. Your Reason Plus subscription also gives you an ad-free version of reason.com, along with full access to the digital edition and archives of Reason magazine. We request that comments be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of reason.com or Reason Foundation. We reserve the right to delete any comment and ban commenters for any reason at any time. Comments may only be edited within 5 minutes of posting. Report abuses.
Please
to post commentsMute this user?
Ban this user?
Un-ban this user?
Nuke this user?
Un-nuke this user?
Flag this comment?
Un-flag this comment?