For cash-strapped city vendors, there was a little good news today.
Mayor Nutter announced today that the city has taken out a short-term loan of $275 million from JPMorgan Chase & Co, much of which will be used to pay city vendors who haven't received checks since July.
The city will pay about $200 million of the $225 million currently owed to vendors, Nutter said. Payments are expected to start going out next week, according to a spokesman for the mayor.
But the loan has some strings attached. It's set at an interest rate of 3 percent until November 30th. After that, the rate jumps to 8 percent. Nutter said he hopes that by that point, the city will have resolved the current budget crisis and will be able to refinance. The city is currently waiting on a vote by the state House of Representatives next week on legislation that would provide budget relief.