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HomeMy WebLinkAboutResolutions - 2009.09.02 - 9957Miscellaneous Resolution # 09204 BY: Commissioner David Woodward, District #18 RE: Board of Commissioners — Oakland Microloan Program TO: Oakland County Board of Commissioners dt424.4t Chairperson, Ladies and Gentlemen: WHEREAS the credit crisis facing our nation has put increasing pressure on the ability of start-up small businesses to gain access to capital, as well as impairing the ability of existing small businesses to acquire loans to grow their businesses; and WHEREAS the U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation: and WHEREAS the SBA provides support for numerous programs to help grow small businesses; and WHEREAS the SBA Microloan Program provides very small loans to start-up. newly established, or growing small businesses; and WHEREAS the SBA makes funds available to nonprofit community based leaders (intermediaries) which, in turn, make loans available to eligible borrowers in amounts up to a maximum of $35,000, with loan repayment periods of up to five (5) years; and WHEREAS eligible intermediaries may be a quasi-governmental economic development corporation; and WHEREAS the Center for Empowerment & Economic Development (CEED) is a nonprofit organization with 25 years of experience in microlending and business development; providing over $4.2 million in microloans and creating 1,700 jobs; and WHEREAS the CEED Microloan Program services Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, Lenawee, Hillsdale and Jackson Counties; and WHEREAS the CEED Microloan Program has already provided $415,000 in loans to Oakland County businesses; however, the overwhelming volume of loan requests from Oakland County based businesses exceed their current service capacity: and WHEREAS the CEED has the ability to borrow up to $2.5 million in microloan funds from the U.S. Small Business Administration; however, a 15% reserve and matching operating funds are required; and WHEREAS the Oakland County Board of Commissioners recognizes that in these challenging economic times it is critical to support small businesses, which are the economic base of our communities. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners creates the Oakland Microloan Program in Oakland County. BE IT FURTHER RESOLVED that the Oakland County Executive Administration is requested to take the necessary action to proceed with entering into a contractual agreement with the Center for Empowerment & Economic Development (CEED) to expand the Microloan Program for Oakland County businesses. Commissioner District I v.—, A Commissioner David DisttiTh) -? issioner District #4 Commissioner District # VW!, dward Chairponfte move theladoption of the foregoing Resolution. issioner let °4- CiTifimissioner>, Commissioner District # District # 2+ Commissioner District #/ IVLoxick. Commissioner . District # Commissioner District # Commissioner District # BE IT FURTHER RESOLVED that the Oakland County Executive Administration is requested to draft and attach a Fiscal Note and establish accounts that reflect the creation of the Microloan Program for Oakland County, as an allocation under the Capital and Cooperative Improvement Revolving Fund (CCIRF), in the Fiscal Year 2010 budget in the amount of $150,000, which is to provide $75,000 for Microloan Program Operations and $75,000 for Microloan Program Loan Loss Reserves. BE IT FURTHER RESOLVED that the budgets for Fiscal Year 2011 and 2012 each include a designation of $75,000 for the Microloan Program Loan Loss Reserves. BE IT FURTHER RESOLVED that the Oakland County Clerk is requested to forward copies of this adopted resolution to the Oakland County Executive and Center for Empowerment & Economic Development. Commissioner Commissioner District # District # Commissioner Commissioner District # District # Commissioner Commissioner District 4 District # Resolution #09204 September 2, 2009 The Chairperson referred the resolution to the Finance Committee. There were no objections.