Title
HEARING - Department of Human Services (DHS) recommending the Board conduct a public hearing to consider and adopt a Resolution to:
1) Authorize a change in criteria for program implementation under Fiscal Year 2008-09 Community Development Block Grant (CDBG) Enterprise Component Grant 08-EDEF-5877 to increase the microenterprise loan purposes from Facade Improvement Loans to include start-up and expansion loans; and
2) Authorize the submittal of the change to the California State Department of Housing and Community Development. (Est. Time: 10 Min.)
FUNDING: Federal CDBG Grant Funds.
Resolution 176-2010
Body
Fiscal Impact/Change to Net County Cost: There is no cost associated with implementing a change in eligible loan purposes.
Background:
The Microenterprise Assistance and the Business Assistance Loan Programs were established by the County and funded through an award from the California State Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) Economic Development Allocation. The Microenterprise Assistance Program provides technical assistance services and loans ranging between $1,000 and $25,000 for eligible applicants seeking business start-up or current business owners, where the business will have or has five (5) or fewer employees, including the owner(s). The applicant must earn 80% or below of the area median income based on household size. The business must operate in the unincorporated areas of El Dorado County. Loan funds can be used for working capital, purchase of supplies and equipment, property acquisition and leasehold improvements. The Business Assistance Loan Program provides loans ranging between $5,000 and $100,000 to start-up or expanding businesses. Businesses are required to create or retain one full-time equivalent job for up to every $35,000 loaned, and a minimum of 51% of the jobs created are to be filled by persons earning at or below 80% of the area median income at the time ...
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