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4 <br /> • Maximum loan of$20,000 per small business, according to the following terms: o <br /> Businesses will be required to provide tax returns. The maximum loan and grant <br /> combination available to a small business will be limited to three months of fixed <br /> operating expenses. <br /> o Loans will be repaid over a five (5) year term. No payments will be due during <br /> the first six months of loan origination. <br /> o No interest will be changed on loans. <br /> o Small business will agree to an auto-draft process for loan payments. <br /> Travis Myren said he sent around some additional information this afternoon for the <br /> recommendation, which is highlighted below <br /> FINANCIAL IMPACT: The Emergency Small Business Funding Program is funded using funds <br /> originally authorized in the Article 46 Sales Tax Fund for the Small Business Loan Program. <br /> Approximately $300,000 is available in this account. These funds will be used for the express <br /> purpose of making small business loans and grants to eligible businesses. <br /> Commissioner McKee asked if this will be differentiated as a first come first serve basis. <br /> Travis Myren said there will be an application period, and each individual loan and each <br /> grant will be limited. He said the evaluation committee will review the applications, and there is <br /> currently a $300,000 budget. <br /> Commissioner McKee said he was speaking first come first serve for the applications <br /> since money is not split out between loans and grants. <br /> Travis Myren said they will leave that to the discretion of the evaluation committee to <br /> decide where the largest need is. <br /> Commissioner Price referred to the tax returns requirement, and asked if there is a <br /> specific number of years that will be reviewed. <br /> Travis Myren said one prior year tax return. <br /> Commissioner Dorosin said the $300,000 is already available for this use, and asked if <br /> there is any discussion of increasing this amount. He asked if the funds were to be increased, <br /> from where would they come. <br /> Commissioner Dorosin said he also wanted to mention that the Board received a letter <br /> from the Town of Carrboro Mayor Lavelle requesting their prorated share of the article 46 tax <br /> for their small business loan program. He asked if this were to be done, from where would the <br /> monies come. <br /> Travis Myren said part of the revolving loan program is that they have the $300,000 <br /> available and if more is needed, staff can come back to the Board with a request <br /> Travis Myren said in terms of Carrboro's request, if they did it on a per capita basis, then <br /> Carrboro would get $45,000, and he would suggest doing the same for the other jurisdictions <br /> on a per capita basis. He said staff could instruct the evaluation committee to make sure there <br /> is geographical equity. <br /> Commissioner Dorosin asked if there is a plan to get the word out about this program, <br /> and are the proposals being evaluated on required documentation, as opposed to if the <br /> business serves a vital need in this critical time. <br /> Chair Rich said this is only for"for-profits" businesses. <br /> Travis Myren said the Chambers are eager to send this out to their membership, and the <br /> Chapel Hill Chamber emailed the Board today and encouraged it to proceed with this. <br /> Commissioner McKee said he noted that when this tax was originally set up, there was <br /> no intent to allocate this to the governmental entities by percentages. He said he is concerned <br /> about the communication from Carrboro, since they do not have a dedicated portion. <br />