Today, the Denver Post published an article about a local business, M&D’s Cafe, which is closing its doors after 34 years in operation because it is unable to make payments on its loans or pay its taxes. The story is important because the cafe was a major presence in its neighborhood, and it is an example of how the economic downturn continues to affect businesses - even those considered to be landmarks.
In November, I wrote an article about the City of Denver’s Office of Economic Development (OED), and the emphasis that Mayor Hancock is placing on small business development (Bureaucracy Better For Business?). The article discussed the small business lending programs that the City offers, where traditional financing through banks is unavailable. It just so turns out that M&D’s was a recipient of one of the loans through the OED, and that the City of Denver is foreclosing the loan.
While the Post maintained its journalistic neutrality and reported the case in an honest light, it is hard to read the article and not feel that the City is the bad guy in this case. But, it is important to remember the role that the OED plays in making small business loans. When you read about a foreclosure it is easy to lump the City’s lending program in with the other bad press about banks. However, what is important to remember is that the OED’s lending program gives small businesses the opportunity for financing and another chance, where traditional financing alternatives are not available.
So, while it is sad to see another business close its doors due to hard times, it is also important to keep in mind that the OED’s lending program made it possible for M&D’s to keep serving the community for a little longer that it would have otherwise.
In November, I wrote an article about the City of Denver’s Office of Economic Development (OED), and the emphasis that Mayor Hancock is placing on small business development (Bureaucracy Better For Business?). The article discussed the small business lending programs that the City offers, where traditional financing through banks is unavailable. It just so turns out that M&D’s was a recipient of one of the loans through the OED, and that the City of Denver is foreclosing the loan.
While the Post maintained its journalistic neutrality and reported the case in an honest light, it is hard to read the article and not feel that the City is the bad guy in this case. But, it is important to remember the role that the OED plays in making small business loans. When you read about a foreclosure it is easy to lump the City’s lending program in with the other bad press about banks. However, what is important to remember is that the OED’s lending program gives small businesses the opportunity for financing and another chance, where traditional financing alternatives are not available.
So, while it is sad to see another business close its doors due to hard times, it is also important to keep in mind that the OED’s lending program made it possible for M&D’s to keep serving the community for a little longer that it would have otherwise.
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