Article: City faults Society's way of meeting lending goal. (Society National Bank)

For at least a year, Society National Bank has used renewed and refinanced loans to fulfill its commitment to make $100 million in new small-business loans in the city of Cleveland by the end of 1995. Last week, after it was called on the matter, the bank agreed to stop the practice.

Cleveland community development director Chris Warren requested the change after learning from Crain's how Society Corp.'s lead bank was measuring its progress toward the $100-million goal. The bank and the city earlier this year said Society in 1992 made $54 million in small-business loans under the agreement.

The lending pact was reached in late 1991 between the bank and the ...

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