HomeMy WebLinkAboutResolutions - 2025.02.11 - 41859
AGENDA ITEM: Renewal of Oakland County Microloan Program
DEPARTMENT: Economic Development
MEETING: Board of Commissioners
DATE: Tuesday, February 11, 2025 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2025-4895
Motion to renew the Oakland County Microloan Program for FY 2025 and invest an additional
$125,000 into the Economic Development Corporation Special Revenue Fund (FND 21180) that wilI
be leveraged by the U.S. Small Business Administration through CEED to make available $1.2
million in new loans to eligible Oakland County small businesses; further, amend the FY 2025
budget as detailed in the attached Schedule A - Budget Amendment.
ITEM CATEGORY SPONSORED BY
Resolution Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
Start-up small businesses continue to have great difficulty in accessing capital, as do existing small
businesses in acquiring loans to grow their businesses. CEED Lending has managed Oakland
County's Microloan program since 2010 in partnership with the U.S. Small Business Administration
(SBA) that offers a number of other programs and services for small businesses. Oakland County
recognizes the importance of small business success as a vital component to our growing economy
and how the Microloan program plays an important role in the economic development success of
the county.
This Microloan program makes loans available to eligible Oakland County small businesses in
amounts up to a maximum of $50,000, with loan repayment periods of up to six (6) years. Since
program inception Oakland County has leveraged an investment of $600,000 to provide funds to
108 Oakland County small businesses totaling $2,537,553, creating 422 new jobs and retaining
another 289 jobs.
An additional investment of $125,000 will enable CEED Lending to make approximately $1.2 million
in new loans to Oakland County small businesses. This $125,000 is available within the existing FY
2025 Economic Development and Community Affairs General Fund budget for the Microloan
program.
POLICY ANALYSIS
Per Resolution #2024-4505 _ 24-72, the FY 2025-2027 Finance Committee Recommended Budget,
presented on September 19, 2024, was amended to assign $250,000 with the FY 2024 Year End
Report from Assigned Fund Balance Strategic Investment Plan to The CEED Small Business Loan
Program Assigned Fund for the purposes of providing loans for start-up and business expansion
equipment, inventory, supplies and working capital. Program funding shall be appropriated based
upon Fiscal Year in the following allotment: $125,000 for FY 2025 and $125,000 for FY 2027.
Fund balance assignments require a separate action by the Board of Commissioners for program
appropriation. This request is to appropriate the assigned funds for the Microloan Program with
CEED Lending.
BUDGET AMENDMENT REQUIRED: Yes
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Catherine Rasegan, Administrator Financial Services
Belinda Turner-DuBois
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 2/11/2025
AGENDA DEADLINE: 02/21/2025 7:36 PM
ATTACHMENTS
1. Economic Dev. Corp_Renewal of Microloan_Schedule A-Budget Amendment
2. combinepdf CMMR
COMMITTEE TRACKING
2025-02-05 Economic Development & Infrastructure - Forward to Finance
2025-02-05 Finance - Recommend to Board
2025-02-11 Full Board - Adopt
Motioned by: Commissioner Michael Gingell
Seconded by: Commissioner Penny Luebs
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Angela Powell, Marcia Gershenson,
William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault,
Linnie Taylor, Robert Smiley (18)
No: None (0)
Abstain: None (0)
Absent: Gwen Markham (1)
Passed
Oakland County, Michigan
ECONOMIC DEVELOPMENT - ECONOMIC DEVELOPMENT CORPORATION - RENEWAL OF OAKLAND COUNTY MICROLOAN PROGRAM
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)
Cost Center
(CCN) #
Account #
(RC/SC)
Program #
(PRG)Grant ID (GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2025
Amendment
FY 2026
Amendment
FY 2027
Amendment
E General Fund Business Development FND10100 CCN1090304 SC788001 PRG133095 GRN0001027 BFA21180 788001 Transfers Out $125,000 $-$-
E General Fund Non-Departmental FND10100 CCN9010101 SC730359 PRG196030 730000 Contingency 125,000 --
Total Expenditures $125,000 $-$-
R Economic Development Corp Business Development FND21180 CCN1090305 RC695500 PRG171110 BFA10100 695500 Transfers In $125,000 $-$-
Total Revenues $125,000 $-$-
E Economic Development Corp Business Development FND21180 CCN1090305 SC731458 PRG171110 730000 Professional Services $125,000 $-$-
Total Expenditures $125,000 $-$-
22109 Schoolcraft Road, Livonia, MI 48150 ∙ Phone 734.677.1400 ∙ Fax: 734.677.1465
∙CEEDLending.org
August 14, 2024
Oakland County Board of Commissioners
Request for Funding : $300,000 ($200,000 for loan loss reserve LLR, $100,000 for operations)
for continued support of CEED Lending/Oakland County Microloan program.
The chart and map included in this report reflect lending activity through the CEED/Oakland
County Microloan portfolio since inception, July 2010. Activity in the microloan portfolio
decreased due to funds received from MEDC allowing us to better leverage our dollars. We
quickly used the $700,000 from MEDC with 43% of the dollars to Oakland County businesses.
The CEED/Oakland County portfolio has experienced writeoffs from 2020-ytd of $138,883.17
with the majority of those dollars ($103,302.06) written of in 2024. Our LLR is low, negatively
impacting our ability to borrow from SBA for microloans.
We are requesting $300,000 from Oakland County which will include $200,000 for LLR and
$100,000 for operations.
Sincerely,
Belinda Turner-DuBois
CEED Lending Director
Year Dollars Closed
Number of
loans closed Jobs Created Jobs
Retained Minority Women
2020 351,000$ 10 19 31 3 6
2021 133,607$ 5 8.5 7.5 5 4
2022 125,500$ 5 27 34 5 4
2023 465,000$ 11 38 40 8 5
2024 19,000$ 1 3 5 1 0
Total: 1,094,107$ 32 95.5 117.5 22 19
2010-2019 1,443,446$ 76 327 172 38 45
2010 - YTD 2,537,553$ 108 422 289
60 64
SBA Microloan
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Oakland County Economic Development 2100 Pontiac Lake Road Bldg. 41 West Waterford, MI 48328 Phone: 248-858-0721 Web: www.advantageoakland.com
Date Created: 8/13/2024
NDisclaimer: The information provided herewith has been compiled from recorded deeds,plats, tax maps, surveys and other public records. It is not a legally recorded map orsurvey and is not intended to be used as one. Users should consult the informationsources mentioned above when questions arise.1 in = 4 miles
2010 - 2 024
*** Confidential for Oakland County Commissioners ***