Orange County NC Website
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 24, 2020 <br /> Action Agenda <br /> Item No. 6-a <br /> SUBJECT: Approval of Emergency Small Business Funding Program <br /> DEPARTMENT(S): County Manager <br /> ATTACHMENT: INFORMATION CONTACT: <br /> Bonnie Hammersley, (919) 245-2300 <br /> Travis Myren, (919) 245-2308 <br /> PURPOSE: To provide Emergency Small Business funding to Orange County small businesses <br /> experiencing revenue loss due to the coronavirus pandemic in the form of both grants and <br /> loans. This program will be funded using Article 46 Sales Tax revenue that was originally <br /> budgeted in the Small Business Loan Program. The current balance in the Article 46 Small <br /> Business Loan Program is approximately $300,000. <br /> BACKGROUND: The coronavirus pandemic has impacted the global stock markets and <br /> disrupted economic and business growth throughout the United States. The County is <br /> committed to supporting its local businesses and has established various grants and small <br /> business loan programs to facilitate economic development. Given the substantial financial <br /> impact on small businesses from this pandemic, a new Emergency Small Business Funding <br /> Program is intended to provide immediate financial assistance. The BOCC previously approved <br /> Article 46 Sales Tax funding for the Small Business Loan Program which will be used to fund <br /> the Emergency Small Business Funding Program. <br /> Eligible small businesses may apply and qualify for either a grant, loan or both. An evaluation <br /> committee composed of two representatives each from the Small Business Grant Committee, <br /> the Agricultural Grant Committee, and the Small Business Loan (SBL) Board will make final <br /> determinations for both grants and loans. This group will be staffed by the County's Chief <br /> Finance Officer and Director of Economic Development. Following BOCC approval, this group <br /> will develop a plan to begin issuing grants and loans between April through June 2020. County <br /> staff will provide status reports to the Board. <br /> Eligibility requirements: <br /> - Orange County based businesses <br /> - Minimum of one year of operations <br /> - For-Profit business status <br /> - Profit and Loss statement indicating profitability prior to coronavirus pandemic <br /> Emergency financing program: <br /> - Maximum grant of $5,000 per small business with no repayment required. <br /> - Maximum loan of $20,000 per small business, according to the following terms: <br />