The loans will be subsidized by a $5 million Community Development Block Grant from the federal government.

The council defeated the proposal, opting to conduct further research on the issue and come up with a percentage that would not unduly burden the city's businesses.

Walsh criticized the proposal, saying it would hurt already embattled biotech companies. The Genetics Institute recently decided to leave, and more may follow, he said.

Councillor Edward N. Cyr also criticized the proposal, saying that biotech labs move too often for the city to invest in the companies profitably.

Addressing the question on whether Cambridge should take a more active role in its businesses, Councillor Francis H. Duehay '55 said that Cambridge must have a more proactive government, citing the successes of Germany and Japan.

Currently, Cambridge citizens make up 7.7 percent of the city's biotech work force, said Assistant City Manager Michael Rosenberg.

Myers said Wolf's program did not go far enough, and proposed raising the 10 percent floor to 15 percent.

"Other programs are trickle-down, and we've seen how that works before," Myers said.

Myers also said that a higher percentage would insure that more jobs are created for Cambridge workers. "We know we'll get a clear return," he said.

The general proposal was approved 6-2, without a specific percentage minimum of Cambridge employment.

Domestic Partners

Councillor Walsh moved that the Council reconsider last week's vote which guaranteed many spousal rights to unmarried domestic partners. An opponent of last week's vote, Walsh said that the council should work to extend the definition of family beyond last week's proposal.