Derby Files Lawsuit Over Loan To Small Business

DERBY — The city has filed a lawsuit against a real estate company that borrowed money from the city’s revolving loan fund and then allegedly never paid the money back.

In 2012 the Board of Aldermen approved an application from Benanto Real Estate, LLC, then based in Derby, to borrow $15,000 from the fund.

The revolving loan fund is a program meant to give small businesses access to money that they can’t through traditional financing. The goal of municipal revolving loans is to help local businesses 
expand or get off the ground in economically distressed places such as Derby.

According to a civil lawsuit filed in November, Derby wants to collect the loan, plus interest, plus money the city has paid lawyers to collect the debt.

The lawsuit also names two individuals — James Benanto, Jr. and Pamela Benanto. The city claims they are personally liable for the debt owed to Derby.

According to the commercial term note included in the civil lawsuit, the real estate company was supposed to make monthly payments of $269.53 per month through 2017.

Court documents state the real estate company is now based in Woodbridge. An email seeking comment was sent to a lawyer representing the individuals.

On Thursday, the Derby Board of Aldermen/Alderwomen met briefly in executive session to talk about the lawsuit with their lawyer, Vincent Marino. However, no action was taken after the executive session.

Executive session meetings are closed to the public and are allowed under state law in specific circumstances, including when legislators are talking about active lawsuits.

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