11/16/1987 Meeting (2) - Laserfiche WebLink

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the committee did address that issue and decided to work with applicants and direct those eligible for the Business Development Fund toward the BDF instead e of the Targeted Business Program. Mr. Miller asked what will prevent the loan program from becoming a grant program. Mr. Smith replied that the division recognizes the risks of the program and is planning to work more closely with the targeted businesses than with the existing business loans. The structure of the program will include work with consulting agencies, and program participants will work closely with the Business Assistance Team on an ongoing basis. Mr. Bennett asked if there have been many applications that have not qualified for the underwriting criteria of the program. Mr. Smith said 17 percent of all applications submitted in the last fiscal year were from mi nori ty businesses, and none received funding. Mayor Obie said he is cautious about the program. He said he spoke with the administrator of a similar program in Portland, who said the assistance project eventually evolved into a grant program. Mr. Smith stated it is important to realize the potential financial losses of the program. He said there is also a risk of a backlash in public perception. Mayor Obie said he is inclined to have the program start with its $75,000 in first-year funds, and then report back to the council. Mr. Smith pointed out there will be presentations before the Community Development Committee after the first three Request For Proposals are submitted. He said the committee will hear descriptions of each loan package and be provided with an ongoing e report of the program. Responding to a question from Mayor Obie, Mr. Smith said approval of the first yearls funding only would not prevent implementation of the program. Mr. Miller clarified earlier statements and said funding for the first year, 1988-89, is $100,000. Money is being reapportioned this year to begin a partial program. He said the intent of the program is to proceed cautiously with the realization that the money is budgeted for loans and not grants. Ms. Wooten said if the council opts for a one-year program, she would like to include educational scholarships and consulting services. Mr. Smith said the money earmarked for consulting services is not available until the start of fiscal year 1988-89. Ms. Wooten congratulated Mr. Smith and the staff of the Development Department and said she is supportive of the proposal. However, she said the council should have the opportunity to repeal the program through the monitoring activity of both the council and the Community Development Committee. Mr. Rutan said he is also supportive of a motion to approve a first year budget. He said a monitoring process would be difficult to accomplish given the council's busy agenda. e MINUTES--Eugene City Council November 16, 1987 Page 12