Agenda - 04-15-2014 - 8a - Laserfiche WebLink

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The Orange County Small Business Loan Program (Program) is a revolving loan fund program designed to stimulate the creation of good jobs for Orange County citi- zens, as well as to stimulate successful business develop- ment and expansion. The program will attempt to assist businesses that have limited access to financing through conventional means or other government guaranteed sponsored programs. Businesses receiving funding through this program are strongly encouraged to be good corporate citizens and to employ Orange County citizens. The Orange County Small Business Loan Program Com- pany was incorporated in September 1999 to make and facilitate loans to small businesses in Orange County. The loan program has been approved and initiated by the County, in order to promote the economic development and general welfare of the county and its citizens. Additional information and applications are available from the Orange County Economic Development Department (contact information located at the bottom of this docu- ment). All applications will be reviewed for eligibility and completeness. Completed applications will be submitted to the Board of Directors for the Orange County Small Business Loan Program Company (who acts as the Loan Committee). Applicants will be informed in writing of the Loan Committee's decision. Eligibility Applicants must be for - profit business entities whose gross revenues do not exceed $3 million per year. All businesses must be located within Orange County in areas zoned appropriately for their use. Owner's length of residence in Orange County may be considered in assess- ment. Applicants must have an equity contribution of at least 10% Owners with an ownership position of 10% or more of the business will be required to execute an Personal Guaranty Agreement for the full amount of the loan. Additional guar- antors may be required. Applicants must be willing to contract for management and technical assistance if determined to be necessary by the Loan Committee. Applicants with pending criminal charges or who have been convicted of a crime and still serving an active prison sentence, are on probation or on parole are not eligible for an Orange County Small Business Loan. Eligible Uses of Loan Proceeds • Working capital or operational funds. • Purchase of equipment, commercial -use vehicles, or ma- chinery. • Improvement of owner - occupied commercial property. (Owner must occupy 50% or more of total space.) • Start -up funding. • Expansion of business services or products. • Acquisition of owner - occupied commercial real estate (7- year maturation). • Tenant up fit and lease -hold improvements. • A small business loan request that is to be used in con- junction with other financing will be considered on a case - by -case basis. • Work force expansion. Loan Proceeds Shall Not Be Used For the Following • Refinancing of existing bank debt or investor loans. The Loan Committee may grant an exception of up to 50% of the loan value. • Purchase of equipment or improvement of real estate which are used or to be used for personal use. • Political activities. • Owner salary and dividend payments beyond an agreed amount. • Speculative ventures (Examples: drilling for gas, or oil, commodity futures). • Lending or investment. • Real property held for sale or investment. • Pyramid sales - distribution plan businesses. • Floor plan financing. • Foreign controlled businesses. • Non - profit institutions. • Private membership clubs. Compliance With Applicable Reaulations In all cases, loans made from this program must be consistent and in accordance with the following: • All state and local regulations governing the applicant's business. • Policies established by the Loan Committee for each par- ticular applicant. Orange County Small Business Loan Program PO Box 1177 Hillsborough, NC 27278 919 - 245 -2325 yscarlett @orangecountync.gov