CONCORD – The New Hampshire Business Finance Authority announced Tuesday approval of a $1 million loan to the New Hampshire Union Leader, the state’s largest newspaper, according to a BFA press release.

The vote was unanimous with BFA Vice Chairman Steve Duprey recusing himself from the vote.

The requirements of the five-year loan include significant equity and collateral contributions from private investors, with an additional $1 million in equity investment and $750,000 in cash collateral provided to secure the BFA’s financing, the release said.

The BFA’s financing requires that rank-and-file employees continue to receive 100% of their pensions and executive pension plan participants have agreed to a 65% reduction, the release said.

The NH NewsGuild, Local 1096 of The NewsGuild/Communications Workers of America, represents approximately 40 workers at the Union Leader Corp.

The NH NewsGuild said members were gratified that the deal appears to ensure the state will benefit from the “award winning journalism, advertising and customer care that our members create on a daily basis.”

“However, we are concerned that it calls for $1 million in equity investment. We want the Union Leader Corp. and the New Hampshire Business Finance Authority to identify any investors and detail the leadership and decision-making roles the investor(s) will have in the company,” the NH NewsGuild statement said.

In the Union Leader article about the loan, Publisher Brendan McQuaid said, “The injection of money to pay for legacy pensions also frees up the Union Leader to invest more in news coverage and employees.

“In addition, the company downsized its office footprint this year, moving from 27,000 square feet in an out-of-the-way industrial park to a 9,000-square-foot office in the heart of downtown Manchester’s Millyard.

“Both moves are aimed at putting journalism first instead of treading water as the company grapples with legacy debt,” McQuaid said in the article. “Without doing this, the paper would struggle to survive.”