HomeMy WebLinkAboutMINUTES - 12032013 - C.110RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Conservation and Development, or designee, to write off certain loans
receivable balances from the Small Business/Microenterprise Loan Program that are not collectible due to business
closure or bankruptcy.
FISCAL IMPACT:
No fiscal impact to General Fund. All funds are Community Development Block Grand funds, CFDA# 14.218. The
total write off amount is $114,500.
BACKGROUND:
The Department of Conservation and Development had administered the Small Business/Microenterprise Loan
Program (Business Loan Program) until the program was suspended in December 2012. The Business Loan Program
provided low-interest loans to small businesses and microenterprises in Contra Costa County. The Business Loan
Program funds were used to help create new small businesses/microenterprises or to help expand existing small
businesses and microenterprises within Contra Costa County.
The Business Loan Program made 24 loans from 2001 through 2012 and there are 5 uncollectible loans (21 percent
of the businesses) totaling $114,500, or 13 percent of all Business Loan Program loan proceeds through the history of
the program. In consulting with the U.S. Department of Housing of Urban Development (HUD) the typical default
rate of CDBG business loans is 25 percent. The Business Loan Program loans are uncollectible due to bankruptcy or
business closure. The bankruptcies or business closures of the five businesses all took place during
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 12/03/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Gabriel Lemus,
674-7882
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: December 3, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc:
C.110
To:Board of Supervisors
From:Catherine Kutsuris, Conservation and Development Director
Date:December 3, 2013
Contra
Costa
County
Subject:Small Business/Microenterprise Loan Program Uncollectable Loans Write Off
BACKGROUND: (CONT'D)
and as a result of the national economic downturn experienced between 2008 and 2010.
Following is a table summarizing these loans:
2005: 2 loans - $38,563
2007: 2 loans - $63,931
2008: 1 loan - $12,006
TOTAL: 5 loans - $114,500
CONSEQUENCE OF NEGATIVE ACTION:
The Business Program loans receivable will be overstated by $114,500.
CHILDREN'S IMPACT STATEMENT:
None.