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17 <br /> 1 February 7, 2020 <br /> 2 The SBL Board of Directors endorsed recommended changes by the departments of Finance <br /> 3 and Economic Development including: <br /> 4 1) Making all Small Business Loans zero interest <br /> 5 2) Enhancing Collections mechanisms to include electronic funds transfer and use of <br /> 6 Collection Agencies <br /> 7 3) Revised Small Business practices to conform with the Department of Finance Policies <br /> 8 and Procedures Manual <br /> 9 <br /> 10 FINANCIAL IMPACT: This item proposes to establish the Small Business Loan Fund on the <br /> 11 County's Books and Chart of Accounts, and transfer $510,000 from the SBL bank account, of <br /> 12 which $410,000 will be used to provide Emergency Small Business grants to businesses <br /> 13 impacted by the pandemic. Budget amendments are forthcoming to effectuate these actions. <br /> 14 <br /> 15 Gary Donaldson made the following PowerPoint presentation: <br /> 16 <br /> 17 Small Business Program Modifications <br /> 18 June 16, 2020 Business Meeting <br /> 19 <br /> 20 Background <br /> 21 1997- Board of County Commissioners (BOCC) approved Bylaws and Articles of Incorporation <br /> 22 establishing the nonprofit Orange County Small Business Loan (SBL) December 1997 <br /> 23 <br /> 24 2008- BOCC Approved the current Small Business Loan Board Composition- <br /> 25 - 1 BOCC Member <br /> 26 - 2 Small Business Owners <br /> 27 - 2 Local Commercial Bankers <br /> 28 - 1 Economic Development Commission <br /> 29 - Orange County Economic Development Director <br /> 30 - Orange County Finance Director <br /> 31 <br /> 32 ❖ Source of funding is Article 46 Sales Tax revenue <br /> 33 <br /> 34 ❖ SBL program is managed by the Economic Development Department <br /> 35 <br /> 36 Abstract Purpose <br /> 37 ❖ Establish the Small Business Fund on the County's Financial System <br /> 38 ❖ Enhanced Policies and Procedures and Controls <br /> 39 ❖ Transfer of all remaining balance of$510,000 and accrued balances from the SBL bank <br /> 40 account to the County's bank account <br /> 41 ❖ Make all outstanding 11 loans (current balance $286,508.17) zero interest and all new <br /> 42 loans zero interest <br /> 43 ❖ Eventual dissolution of the SBL nonprofit as unanimously voted by the SBL Board <br /> 44 <br /> 45 Dissolution of Small Business Nonprofit <br /> 46 ❖ Transfer funds from Small Business Loan Company to County General Account <br /> 47 ❖ Establish County General Ledger Accounts for Income Statement and Balance Sheet <br /> 48 reporting <br /> 49 ❖ Loan Board Chair submits letter to County Manager ( date to be determined) <br />