‘ ‘ ‘ Suburbia once formed the thriving watering hole for families of all strata. But now more… ‘ ‘ ‘ Suburbia once formed the thriving watering hole for families of all strata. But now more than ever, many mini-malls are frequented only by tweens in bejeweled bell-bottoms and the occasional soccer mom, though most have moved on to greener pastures, like amazon.com. ‘ ‘ ‘ Boscov’s, a department store chain headquartered in Reading, has felt the effects. These trends forced the store to file for bankruptcy this summer. Pennsylvania has asked seven counties to sign off on a 20-year federal loan that would keep Boscov’s in business. ‘ ‘ ‘ ‘ ‘ ‘ The loan would give the chain, which employs 5,000 people in Pennsylvania, $35 million in federal money guaranteed through the U.S. Department of Housing and Urban Development, according to the Pittsburgh Post-Gazette. ‘ ‘ ‘ Before the state can secure the loan, the seven affected counties ‘mdash; Snyder, Cambria, Butler, Blair, Lackawanna, Lebanon and Schuylkill ‘mdash; must pledge to use their Community Development Block Grant funds as collateral if Boscov’s defaults. ‘ ‘ ‘ Currently one county has refused, one county has approved, and five have not yet decided. Commissioners from Butler County, which remains undecided, are now asking the state for more information regarding who will be penalized if Boscov’s defaults. ‘ ‘ ‘ Proponents of the bailout argue that the county agreements are largely a technicality ‘mdash; state guidelines require counties to cover collateral in the case of a default. Boscov’s officials report that the chain can cover the collateral in real estate and inventory. The state also operates a loan loss reserve account that could be tapped into before counties would be forced to pay, although that aspect of the loan program is not in writing. ‘ ‘ ‘ ‘Bailout’ has been a popular buzzword this fall ‘mdash; both the automotive and banking industries received billions in federal dollars after the stock market hit record lows in October. However, unlike the banking and automotive industries, which employ thousands of employees and play an integral role in the national economy, Boscov’s does not support a particularly large workforce. Job losses are never desirable, but Pennsylvania’s economy will certainly not crumble with the loss of 5,000 jobs. ‘ ‘ ‘ Though the current recession has perpetuated Boscov’s losses, the changing market might have accelerated the retailer’s failures. Department stores have struggled for years now, particularly as shoppers move toward online shopping and mega-chains. Subsidizing Boscov’s might be a huge financial risk, as it is unclear whether the store can survive the current financial storm. ‘ ‘ ‘ Government subsidization of failing businesses should only be offered as a last resort for businesses that sustain our economy. Rather than subsidizing Boscov’s with federal funds, Pennsylvania should take a cue from its own market and encourage the chain to file for loans from private investors.’ ‘ ‘