Jack Kimball (GG file photo)
From the Jack Kimball for Governor Exploratory camp:
NEW HAMPSHIRE’S OWN GOVERNMENT BAILOUT
State agrees to guarantee loan up to $187,500 for failing daily newspaper
PORTSMOUTH, N.H.—The Executive Council recently approved a working capital loan guarantee, which would secure 75 percent of a $250,000 loan to the new owner of the Eagle Times in Claremont. The loan would be administered through the New Hampshire Business Finance Authority (BFA). The Eagle, which collapsed previously, was bought out of bankruptcy last September by a Pennsylvania based newspaper chain.
“Newspapers across the country are finding innovative ways to cope with technological change without the aid of government,” said Jack Kimball, New Hampshire exploratory candidate for governor.
“In addition, we have seen the downright failure of the bailouts from Washington to produce any economic growth. At a time when New Hampshire’s budgetary situation is shaky at best, this is not an appropriate expenditure of state funds. Allow the free market process to work rather than allowing government to choose winners and losers.”
The loan from the Charlestown-based bank is expected to close this week, according to Mike Donahue, a senior credit officer at the BFA. The Charlestown bank reportedly has ties to the Eagle’s previous owner and publisher.
“I am very concerned. This decision defies common sense,” said Kimball.
“As soon as a government entity takes part in the financial rescue of a newspaper, that newspaper clearly loses its objectivity. Not only is this an issue of fiscal irresponsibility and lack of accountability, it is an issue of morality. The problem is clear—if you rob Peter to pay Paul you will have Paul’s support every time. The Bill of Rights guaranteed a free press in part to act as a watch dog over our government.”