Butler County commissioners want more information before they decide whether to back a loan that would keep the Boscov's department store chain in business. The company has a store in the county at Clearview Mall in Center.

Seven Pennsylvania counties have been asked by the state to sign off on a financing arrangement on behalf of Boscov's, which employs 5,000 in Pennsylvania and has 39 stores. To date, Snyder County has refused. Cambria has approved it, and Butler, Blair, Lackawanna, Lebanon and Schuylkill have yet to decide.

Butler County Solicitor Julie Graham has advised the commissioners to wait before voting on the issue to give the state time to put in writing who exactly would hold the financial bag should Boscov's default on a $35 million federal loan guaranteed by Pennsylvania.

Urban Design Ventures, a planning and architectural firm, has been retained by the Pennsylvania Department of Community and Economic Development to prepare the application for the Section 108 loan guarantee through the U.S. Department of Housing and Urban Development on behalf of Boscov's.

Walter Haglund, president of Urban Design Ventures in Homestead, met with Butler County officials Monday to outline the particulars of the deal that has the support of Gov. Ed Rendell.

To secure the HUD loan, the seven counties have been asked to sign off on the loan application. Though Boscov's supposedly has enough assets in real estate and inventory to collateralize the loan, the federal guidelines require that the counties pledge their Community Development Block Grant funds as collateral for the duration of the 20-year loan.

"That's what is under the guidelines in the case of a default. But it's never going to come to that. First, there's collateral from Boscov's and [if that wouldn't be enough in the case of a default], there will be a loan loss reserve account [through the state,]" Mr. Haglund said.

However, that aspect of the loan program isn't in writing, and Ms. Graham said she wanted to see that before she would recommend that county commissioners vote on the matter.

Mr. Haglund said the agreement is being drafted and reviewed by attorneys.

Each of the seven counties had been asked to agree to back $5 million in loans, totaling $35 million. Since Snyder County refused, the remaining counties are being asked to back $5,833,333.

Albert R. Boscov, son of the store founder who came out of retirement to put together a team of investors to save the chain from bankruptcy this past summer, is bringing $53 million to the table.

Based in Reading, the chain used "bridge financing" -- essentially, a temporary loan -- to keep the stores afloat until permanent financing could be put in place.

The loan application is supported by Gov. Rendell because of the company's financial investment in the state. The company employs a total of 7,000 to 8,000 in five states, 5,000 of which are in Pennsylvania.

The interest rate likely would be 4 percent to 5 percent, Mr. Haglund said. He said a conventional loan is "very difficult to get in that amount these days."

As for Snyder County's refusal in December to participate, Mr. Haglund said he believes it is due to a lack of understanding. "I don't think they understand what this is all about. They were nervous about pledging their CDBG monies, but they didn't understand that it wouldn't ever come to that," he said.