Agenda - 06-21-2011 - 5s - Laserfiche WebLink

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March 21, 2000 BOCC Meeting -The BOCC approved a "Resolution Regarding Small Business Loan Program" which included anine-member Board of Directors comprised of three County officials (County Finance Director, County Manager, and Economic Development Director) and six bank representatives. The funding structure of this program included eight banks committing a credit line (up to $62,500 each) to the Loan Program and Orange County providing a Loan Loss Reserve of not less than 30% of the aggregate loans made from the program (the Loan Loss Reserve totaled $150,000). March 13, 2007 BOCC Meeting -The BOCC approved granting $75,000 of the County's committed $150,000 loan loss reserve to serve as `seed money' for a revolving loan fund and to transfer the remaining $75,000 to the Loan Program so that the full $150,000 originally committed was available for lending. The agenda item also included an endorsement from the Board of Directors recommending several changes including making Orange County businesses with owners that live outside the County eligible for loans and revising the operating policies and procedures as determined by the Board of Directors. No timing for these recommendations was proposed at this time. January 15, 2008 BOCC Meeting -The Board approved changes to the Loan Program's Bylaws to modify the Board of Directors to its current composition of two small business owners, two local bankers, one member of the BOCC, one member of the Economic Development Commission, the Orange County Economic Development Director, and the Orange County Financial Services Director. Now that the Loan Program has developed a proven method of operations, the Loan Program's Board of Directors has endorsed revisions to the Policies and Procedures to make the program as effective as possible in serving the small business community of Orange County. These updates are presented in the attached revised Policies and Procedures document, with major modifications that include: 1. Source of Funds. Changes to structure were made to reflect that Orange County is the sole source of funding for the Loan Program, rather than credit lines being provided by area banks with Orange County only funding a loan loss reserve. 2. Residency. Changes reflect that while the business must be located in Orange County to be considered for the Loan Program, it is not necessary for the owners to be residents. This change was drafted in order to ensure that any business that desires to locate in Orange County may be considered under this program. During the review process, the Board of Directors will evaluate all components of an application, making loans to the most qualified businesses that will provide the greatest benefit to Orange County as a whole. Revisions to this section note that preference during the review process may be provided to applicants with one or more owners that are Orange County residents. A brief review of comparable small business loan programs did not identify a residency requirement in any of the other programs. 3. Delinquent Loans. Guidelines for the collection of delinquent loans were added. 4. Operational Updates. Small changes were made to reflect the operational procedures that the Board of Directors has developed during its successful award of recent loans, such as determination of loan repayment schedules and requesting an interview with applicants. FINANCIAL IMPACT: There is no financial impact with this item. RECOMMENDATION(S): The Manager recommends that the Board receive the status update on the Loan Program and approve the updates to the Orange County Small Business Loan Program Company `Operating Policies and Procedures' document as endorsed by the Loan Program's Board of Directors.