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Commission renews subrecipient agreement with Park Local Development Corporation for CDBG revolving loan fund
Summary
Park County renewed a subrecipient agreement with Park Local Development Corporation to continue management of the county’s Community Development Block Grant revolving loan fund used for local business bridge loans.
Park County commissioners on June 17, 2020, renewed a subrecipient agreement with Park Local Development Corporation to continue administering the county’s Community Development Block Grant (CDBG) revolving loan fund.
Owen Trent explained the agreement governs Park Local Development Corporation’s management of grant funds that the county received in prior years for a revolving loan fund. “These are bulk grant funds that were distributed to the county many many years ago. And they're used to make loans to local…that are like bridge loans when they can't get funding through other pieces,” Trent said.
Commissioners asked about loan performance; staff said the program has had one loan default in prior management and otherwise provides an important lending option for local small businesses. Commissioner Vermillion and others praised the program’s value to small businesses and moved to renew the agreement. The motion was seconded and approved by voice vote.
The renewed agreement includes updated administrative-fee handling and terms similar to the prior two-year arrangement; staff said distributions to applicants depend on cash on hand from assessment collections and grant receipts.
No new county funds are required to operate the revolving loan fund; staff said the program operates from grant funds and retains fees to administer lending activity.
