May 28--NORFOLK -- Waterside Capital has agreed to pay the federal government $11.7 million to settle a defaulted loan and has begun liquidating its investments.
The Virginia Beach-based investment company was sued in federal court after defaulting on its $11.7 million loan from the U.S. Small Business Administration.
The U.S. Attorney's Office filed papers in court Tuesday that the case has been settled. A judge must approve it.
The 20-year-old company had been an investor in small businesses throughout the mid-Atlantic, using SBA loans. The company's website says it is no longer taking on new investments.
A recent company securities report said it hopes to complete the liquidation by 2015.
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