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` 1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> MEETING DATE: December 4, 1995 <br /> Action Agenda <br /> Item # X-C- <br /> SUBJECT: Orange County Small Business Loan Program <br /> DEPARTMENT: Economic Development PUBLIC HEARING:—Yes NO <br /> Commission <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> O.C. Small Business Loan Program <br /> Operating Policies and Procedures Ted Abernathy(ext. 2325) <br /> (pages 2-7) <br /> TELEPHONE NUMBERS: <br /> Hillsborough - 732-8181 <br /> Durham - 699-7331 <br /> Mebane - (910) 227-2031 <br /> Chapel Hill - 967-9251/968-4501 <br /> Purpose: To receive and provide input on a proposal to develop an Orange County Small <br /> Business Loan Program. <br /> Background: The Economic Development Strategic Plan calls for the encouragement of small <br /> business in Orange County through "creative financing options". At the strong encouragement of <br /> the EDC Board of Directors, the staff has been working with the local banking community to <br /> develop a small business loan program. A verbal agreement has been reached with the bankers to <br /> participate in a 3-year, one half million dollar loan pool. <br /> If developed, this program would provide market-rate loans to local small businesses. The banks <br /> would provide all initial capital at cost. The County would manage the program and provide a <br /> 30-% loan loss reserve. <br /> i <br /> Recommendation: If the program as presented meets with the general approval of the <br /> Commissioners, the staff should be directed to develop the legal documents to start the program <br /> and bring this item back for final approval. <br />