Agenda - 01-05-1987 - Laserfiche WebLink

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S • 2 15: Job Creation. The project must lead to the creation or retention of at Least one job per $15,000 of SBA funds Loaned. (For example, a $500,000 project with 30% SBA participation of $200,000 must create or save 13 jobs within two years.) Since it is a federal program, relocation projects are not eligible, since they do not contribute to net national job creation. Procedure for Making SBA•504 Program Available in Oranoe County., The federal legislation requires that SBA 504 Loans can be made only through Local development companies, or "CAC's". CDC's are certified by the SBA to operate on a county—wide basis, and if a county is not served. by a CDC, local business cannot obtain 504 financing. This is currently the position obtaining in Orange County. The options for Orange County regarding the availablity of 504 loans is either to create an Orange County CDC, or to invite an existing CDC to make this service available in Orange County. If Orange. County invites an existing CDC to make the program available, the procedure is by formal resolution of the county commissioners, which is then forwarded to the SBA for approval. CEDCO. The Capital Economic Development Corporation (CEOcO) is a community development corporation Located in Raleigh, which has been operating as the Wake County CDC since 1983. In 1985 and 1988 CEDCO has achieved eight SBA loans in Wake County, which is a good record, since these loans are difficult to qualify for. Recently Durham County was added to CEDCO's area of 504 certification, and already one 504 commitment has been made in Durham. CEDCO would like to offer the availability of SBA 504 financing to Orange County businesses, and proposed the same two alternatives offered to Durham County: 1) CEDCO would make the program available to Orange County at no cost, and no time or other committment or input from the County; or 2) the CEDCO board would add one member representing Orange County interest and in return Orange County would contribute to CEDCO's administrating expenses ($2,400 in the first year). This is the arrangement which Durham County has opted for. In both cases CEDCO would inform area bankers of the program and keep regular contact with Orange County bankers and relevant groups. CEDCO's expansion of the 504 program to Orange County would mean the availability of a new financing vehicle for area's small businesses. Everything is currently in place for CEDCO to efficient- ly apply for, close, and service 504 Loans in Orange County. In addition, Janneke Hermans can offer advice to businesses about other SBA loans and programs.