The effect of the state budget deadlock has entered a new phase. Social service agencies such as Collaborative Solutions and PATH in Bloomington Normal are seeking out loans to stay in business. PATH Director Karen Zangerle says conventional lenders are reluctant, even if they see the state owes the agency about $200,000. But, there is a whole new industry that has popped up to take advantage of the standoff between Governor Bruce Rauner and lawmakers.
Zangerle says the fees are quite steep. But, she says PATH may end up doing that, though the cost of borrowing is quite high.
Zangerle says she scared about making payroll after January for the five person Adult Protective Services Unit that investigates abuse and exploitation of the elderly and those with disabilities, a program required by law.
Cheryl Gaines of Collaborative Solutions says she has taken out a loan to continue providing counseling to domestic abusers, under an unpaid state contract.
Zangerle says PATH has also tried fundraising, and while she is grateful and it is a help, it is not enough to make up for what the state is not paying.
