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' 1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> MEETING DATE: September 2, 1997 <br /> Action Agenda <br /> Item # q_b <br /> SUBJECT: Orange County Small Business Loan Program <br /> DEPARTMENT: EDC PUBLIC HEARING: Yes No X_ <br /> BUDGET AMENDMENT NEEDED: Yes_No X <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Letter to John Link Ted Abernathy(ext. 2325) <br /> Policy&Operating Procedures <br /> Agenda Abstract (8/4/97) TELEPHONE NUMBERS: <br /> Attorney's Letter(4/25/97) Hillsborough - 732-8181 <br /> Summary of Small Business Durham - 699-7331 <br /> Loan Program Mebane - (910) 227-2031 <br /> Carrboro Brochure Chapel Hill - 967-9251/968-4501 <br /> Purpose: <br /> For the Board of County Commissioners to receive additional information and to consider <br /> authorizing staff to proceed with legal actions required to initiate the Orange County Small <br /> Business Loan Program. <br /> Background: <br /> At the August 4, 1997, Board of County Commissioner meeting, the Commissioners discussed <br /> the loan pool and had several questions and concerns. A newly revised"Operating Policies and <br /> Procedures" is attached which reflects two changes requested by Commissioners, additional <br /> changes requested by the County Attorney, and wording changes to some language to make the <br /> document easier to read. <br /> The two changes to the program proposed by Commissioners are to add an additional eligibility <br /> standard requiring two years of Orange County residency by applicants, and to increase the <br /> number of loan committee members appointed by the Commissioners from two to three. <br /> If the Commissioners agree to move forward, we would bring the banks back together to get their <br /> approval. The next steps would be to develop legal documents for commitment by all parties, to <br /> develop third-party contracts for underwriting and servicing, and to"create" the non-profit <br /> corporation, as recommended by the County Attorney, to receive the bank funds, incur the debt, <br /> and lend the money. <br /> Recommendation: As the Board of Commissioners directs. <br />