EDITORIAL: O’Garro Loans Show Access Counts

Feb. 01--When Earl O'Garro Jr. got a business loan from the state in 2012, he hired Christopher Cloud as his lobbyist.

It was not immediately clear why Mr. O'Garro, an insurance broker, needed a lobbyist, but now a reason suggests itself: Mr. Cloud knew his way around the state Department of Economic and Community Development.

As The Courant reported, DECD deputy commissioner Ron Angelo intervened at Mr. Cloud's request to help Mr. O'Garro get a second state loan after another official concluded that his Hybrid Insurance Group was not eligible for more state money.

Mr. Angelo says he did nothing wrong or out of the ordinary, and there is no evidence that he did. The small-business loan program that Mr. O'Garro borrowed from has made more than 1,000 loans, and only a few have raised eyebrows.

But when a high-ranking lending official is easily accessible to lobbyists looking for state funds, it looks bad.

Mr. O'Garro first received a $126,000 loan and grant package through DECD's Small Business Express program in March 2012. He moved his small insurance brokerage to a Hartford building owned by Mr. Cloud and his politically connected family. Some months later, Mr. O'Garro sought another small-business loan.

DECD project manager Barbara Fernandez informed Mr. O'Garro on Feb. 1, 2013, that he could not apply again for the Small Business Express program until his current loan was paid off. A few hours later, Mr. Cloud emailed Mr. Angelo asking for his help in getting Mr. O'Garro "a larger loan ... to grow more jobs in Hartford."

"I'll take care of it," Mr. Angelo replied to Mr. Cloud.

Mr. Cloud replied, "Thanks my friend! Have a great weekend!"

Mr. Angelo shifted Mr. O'Garro to another loan program, from which Mr. O'Garro eventually was approved for a $500,000 loan. He received half the amount before his business went under last summer. Mr. O'Garro owes the state about $371,000 on both loans. He is also under federal criminal investigation.

Mr. Angelo said he plays an active role in all applications and that Mr. O'Garro was eligible for the loans he received. The DECD official said he is often approached by lobbyists, mayors and legislators on behalf of applicants.

There's the rub. Not all applicants for small-business loans can afford high-powered lobbyists; this scenario suggests those who can have an advantage. That can undermine confidence in the system. While lobbyists have a role to play in the workings of government, this might be an area to put out-of-bounds.

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