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Jackson County mulls Sequoia Fund partnership to revive $1M revolving loan fund
Summary
County staff introduced a proposal to partner with Sequoia Fund to manage a dormant county revolving loan fund; the fund size is roughly $1,000,000, average loan amounts cited near $29,000 and presenters proposed an MOU and individual participation agreements.
Jackson County commissioners heard a work‑session presentation on July 6 about restarting a dormant county revolving loan fund by partnering with Sequoia Fund, a Native‑certified community development financial institution that has operated since the 1990s.
Tiffany Henry (economic development staff) said county dollars previously used for pandemic relief were reorganized and that staff had been exploring options to get dormant capital back into circulation. Russ Siegel of Sequoia Fund outlined how the nonprofit would administer loans on behalf of the county, perform underwriting and collections, and provide reporting without drawing on county staff for day‑to‑day administration.
Siegel cited Sequoia Fund’s performance metrics: "We have deployed $35.5 million since our incorporation in 1998," he said, adding the fund’s average loan is roughly $29,000 and that Sequoia’s current average interest rate for these loans is about 7 percent. He said the organization’s default rate is "about 2%." Siegel recommended individual participation agreements for each loan and an MOU with the county to define roles, remittances and reporting.
Commissioners asked about fund size and risk allocation. Staff said the county’s available capital for this program is "close to $1,000,000." Sequoia said it can leverage county dollars with its capital, share risk through participation arrangements, handle legal recovery work and provide regular impact reporting.
The board expressed general support to proceed and asked staff to draft a memorandum of understanding that would be brought back for formal consideration.
Why this matters: A locally administered revolving loan fund can provide capital to small businesses that are too small or too new for traditional bank lending, potentially supporting startups, daycare certification and small‑scale expansions in Jackson County. The proposed structure would keep underwriting, servicing and collections with the external CDFI to limit county administrative burden.
Next steps: staff will draft an MOU and return to a future meeting for the board to consider specific legal documents and loan participation terms.
