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REVISED ABSTRACT <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br /> <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 24, 2020 <br /> Action Agenda <br /> Item No. 6-a <br /> <br />SUBJECT: Approval of Emergency Small Business Funding Program <br /> <br />DEPARTMENT(S): County Manager <br /> <br />ATTACHMENT: INFORMATION CONTACT: <br /> <br /> <br /> <br /> Bonnie Hammersley, (919) 245-2300 <br />Travis Myren, (919) 245-2308 <br /> <br /> <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 /> <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 /> <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 /> <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 /> <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: