Orange County NC Website
Browse       Search
17 <br /> 1) Making all Small Business Loans zero interest <br /> 2) Enhancing Collections mechanisms to include electronic funds transfer and use of <br /> Collection Agencies <br /> 3) Revised Small Business practices to conform with the Department of Finance Policies <br /> and Procedures Manual <br /> FINANCIAL IMPACT: This item proposes to establish the Small Business Loan Fund on the <br /> County's Books and Chart of Accounts, and transfer $510,000 from the SBL bank account, of <br /> which $410,000 will be used to provide Emergency Small Business grants to businesses <br /> impacted by the pandemic. Budget amendments are forthcoming to effectuate these actions. <br /> Gary Donaldson made the following PowerPoint presentation: <br /> Small Business Program Modifications <br /> June 16, 2020 Business Meeting <br /> Background <br /> 1997- Board of County Commissioners (BOCC) approved Bylaws and Articles of Incorporation <br /> establishing the nonprofit Orange County Small Business Loan (SBL) December 1997 <br /> 2008- BOCC Approved the current Small Business Loan Board Composition- <br /> - 1 BOCC Member <br /> - 2 Small Business Owners <br /> - 2 Local Commercial Bankers <br /> - 1 Economic Development Commission <br /> - Orange County Economic Development Director <br /> - Orange County Finance Director <br /> ❖ Source of funding is Article 46 Sales Tax revenue <br /> ❖ SBL program is managed by the Economic Development Department <br /> Abstract Purpose <br /> ❖ Establish the Small Business Fund on the County's Financial System <br /> ❖ Enhanced Policies and Procedures and Controls <br /> ❖ Transfer of all remaining balance of$510,000 and accrued balances from the SBL bank <br /> account to the County's bank account <br /> ❖ Make all outstanding 11 loans (current balance $286,508.17) zero interest and all new <br /> loans zero interest <br /> ❖ Eventual dissolution of the SBL nonprofit as unanimously voted by the SBL Board <br /> Dissolution of Small Business Nonprofit <br /> ❖ Transfer funds from Small Business Loan Company to County General Account <br /> ❖ Establish County General Ledger Accounts for Income Statement and Balance Sheet <br /> reporting <br /> ❖ Loan Board Chair submits letter to County Manager ( date to be determined) <br /> ❖ Complete requisite dissolution forms to NC Secretary of State and Internal Revenue <br /> Service <br /> Policies and Procedures Enhancements <br />