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County approves 'Guilford Gains' capital access program, establishing $400,000 reserve for loan defaults
Summary
The board approved an economic-development capital access program to provide working-capital loans to small businesses that contract with the county; the county will establish a $400,000 reserve for defaults and pay an administrator fee, with quarterly board reporting.
Guilford County commissioners approved a county-backed capital access program intended to expand small-business access to working capital.
Economic-development staff described 'Guilford Gains' as a public–private nonprofit partnership that will offer low-cost loans to county contractors and subcontractors. Under the program the county will establish a $400,000 reserve fund to cover potential loan defaults and pay an administration fee to a CDFI or program administrator (the presentation cited a proposed $150,000 fee over three years). The presenting staff said similar programs report default rates below 5 percent and that the county will monitor program performance.
"We would establish a fund in the amount of $400,000 to be held in an approved account to be used only in the event of a default of any funds received by the participants," a staff presenter said. Commissioners asked about loan terms, interest rates and oversight; staff said loans would carry interest rates below commercial rates and that quarterly updates and oversight would be provided to the board.
The board approved the program 8–1. Presenters said they would return with quarterly performance updates and that the board could pause the program if results raised concerns.
