Pennsylvania has offered Scranton a $2 million interest-free loan and a $250,000 grant if Mayor Chris Doherty and the City Council can agree on a revised recovery plan by Aug. 1 and enact it by Aug. 15.

Scranton, which generated national headlines when it started paying employees the federal minimum $7.25 per-hour wage in defiance of a court order and is in danger of missing its payroll next week, cannot obtain a $16 million bridge loan from any bank because of its finances.

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