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<br />PROJECT TYPE:...!... SP <br />PROJECT DESCRIPTION: <br /> <br />MP <br /> <br />X MJ <br /> <br />APPLICATION NO: 85-601 <br /> <br />OVERALL STAFF RATING <br />Low <br />Medi um-Mi nus <br />Medium <br />Medium-Plus <br />X High <br /> <br />APPLICANT: Montrose County (Delta, Gunnison, Hinsdale, <br />Ouray and San Miguel Counties) <br /> <br />PROJECT TITLE: Region 10 Economic Development <br />District Revolving Loan Fund <br /> <br />AMOUNT REQUESTED: $1,000,000.00 <br /> <br />. <br /> <br />CDBG funds will be used to expand a revolving loan fund (RLF) for business in the six <br />county area of State designated Planning Region 10. The RLF will make loans to <br />companies hiring new employees at interest rates that are lower than standard lending <br />rates. The lower interest rate and the availability of financing should assist <br />regional efforts to diversify local economies and reduce high unemployment rates of <br />the Region. Loans will be made in participation with traditional lenders. Important <br />guidelines of the RLF are: at least 80% of the new employees must meet state <br />developed low-and moderate-income criteria, at least one job must be created for each <br />$8000 loaned. Participation in a project will generally be as follows: borrower <br />20%, RlF 20%, and Bank(s) 60%. <br /> <br /> PROPOSED PROJECT ACTIVITIES AND BUDGET <br /> IBrd. CDBGI I ProJect Fundi ng <br />Project _ INat. $L/MI Project 1 State I Other <br />Acti vi ti es 10bj. % I Costs 1 CDBG I Amount I Source I Status <br /> 1 I I I I I <br />Administration I 1 47,8501 10,0001 37,580lDistrict 10 I Committed <br /> I 1 I I I I <br />Revolving Loan FundlL/M 80 15,145,000 990,COOI1,000,000IBorrowers 1 Required <br /> I I 13,155,000IFinancia1 1 Earmarked <br /> 1 I I 1 Insititutionl <br /> 1 I 1 I 1 <br /> I I I 1 I <br /> I I 1 I I <br />. 1 1 I 1 I <br />1 1 I I 1 <br /> I 1 I 1 I <br /> I I I 1 I <br /> 1 1 I 1 1 <br /> T ota 1 s 15,192,580 1,000,00014,192,5801 <br /> <br />. <br /> <br />BACKGROUND INFORMATION: Montrose Co. <br />a. 1980 Population: 24,352 (total) <br />b. # L/M Persons: 9,119 <br />c. % L/M Persons: 38.04% <br />d. Current Co. Unemp1. %: 10.2% <br />e. 3 Year Co. Unemp1. %: 11.3% <br />f. Assessed Valuation: 100,696,071 <br />g. Mill Levy/Overlapping: 23.601/70.184-103.843 <br />h. Bonded Indebtedness: 1,738,000 <br />i. Sales Tax %/Revenue: N/A,N/A <br />Background information on the other participating counties will be available at the <br />CDBG Advisory Committee meeting upon request. <br />************************************************************************************** <br />PROJECT REVIEW FACTORS <br /> <br />L 1 M I H I <br />1. PROJECT IMPACT I I X I ' <br />Based on established loan criteria, a minimum of 198 low and <br />a. Low/Mod Income moderate income residents will be directly benefited through <br />Benefit employment. Surveys and current loan requests indicate that <br />approximately 320 jobs will be created and policy requires <br />that at least 80% of these jobs will be filled by low and <br />moderate income persons. <br />Unemployment in the six counties to be served by the RLF I <br />b. Need and Extent averaved 9.2% during Jan-Aug '84 which was 4 points above thel <br />Addressed State s average. A needs assessment of businesses revealed I <br />a need for $1,301,000 of COBG funds to leverage a total 1 <br />direct investment of $7,320,000. I <br />I <br />Project complements other economic development efforts being I <br />c. Consistency/ pursued on a local, regional and state level. It is consis- I <br />Coordination tant with the community development plan for the region and I <br />demonstrates strong multijurisdictional cooperation. Also 1 <br />complements JTPA and EDA Title IX programs. 1 <br />