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Board asks staff to draft loan-forgiveness criteria after Mountain Meadow Farms requests relief
Summary
A microenterprise loan recipient, Mountain Meadow Farms owner Bridal Ostrom, requested forgiveness of a $50,000 CDBG loan after losses from dog attacks. The board directed staff to return with forgiveness criteria and a plan to consider Ms. Ostrom's case at the next meeting.
The Mariposa County Board of Supervisors on March 18 took up a request from Bridal Ostrom of Mountain Meadow Farms to forgive a $50,000 microenterprise loan issued through the county—s Community Development Block Grant program.
Senior Planner Ben Goger explained the CDBG microenterprise loan program and noted the loan terms (10 years at 2%). Goger said program income from loan payments must be tracked and used for eligible CDBG activities and that staff presented four possible approaches: (1) develop criteria for forgiveness tied to unforeseen negative events, (2) forgive some portion of outstanding balance, (3) forgive the loan in full today, or (4) take no action.
County Administrative Officer Joe Lynch recommended delaying a case-by-case decision until the county adopts consistent criteria to ensure equitable treatment and avoid inconsistent precedent. "My recommendation would be to not make a decision today," Lynch said, asking the board to allow administration time to craft a recommended forgiveness package.
Public comment included testimony from Ms. Ostrom describing business losses after uncontained dog attacks and from community members who urged the board either to make Ms. Ostrom whole or to create a fair, consistent policy. The Economic Development Corporation's president and other commenters expressed support for a framework that includes unforeseen, uncontrollable circumstances as possible grounds for forgiveness.
Following discussion, supervisors requested staff research examples used by other counties and return at the next meeting with proposed criteria and options, and to present a separate item addressing Ms. Ostrom—s specific request so she could receive a timely decision.
Next steps: Staff will research comparable county criteria, draft options (including possible partial forgiveness thresholds, caps such as $10,000 used previously, and required documentation), and return with recommendations and a specific agenda item addressing Ms. Ostrom's petition.
