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APPLICATION NO.: 85-601 APPLICANT: Montrose County (Delta, Gunnison, Hinsdale, Ouray and San Miguel Counties) 2. PUBLIC/PRIVATE COMMITMENTS a. Local Financial, Commitments b. Local Non-Financial Commitments c. Other Commitments 3. MANAGEMENT CAPABILITY a. Staff and Contractors b. Budget c. Statutory/Regula- tory Comp 1 i ance PRO STATEMENTS: L I M I H I I I X I $37,580 - ProJect Administratlon $3,155,000 - Financial institutions at preferred rates $1,000,000 - Borrowers (20% of project costs) I $1 million of CDBG funds would leverage a minimum of I $4,192,580. I Municipal and county governments served by RLF have I expressed a willingness to work with assisted businesses I to reduce development costs. Loan committee members with I financial expertise have been appointed to represent the I regi on. I The Colorado Job Service Center and Job Training Partner- I ship Act vendor have agreed to continue the established I job referral, training and income verification process. I I L I M I H I I I I X I I I Staff has experienced administering multi-jurisdictional I economic development programs and providing technical I assistance to small businesses. I Only 1% of funds requested ($10,000) will be used for I program administration. Budget estimates were based on I actual prior expenses, surveys and data gathered from I other RLF agencies. I I Staff administers other federal funds and has system I established for compliance with Davis-Bacon, environ- I mental and accounting requirements. . o Survey of businesses indicates substantial need for loans, particularly among manufacturing and agricultural businesses. o Low CDBG cost per job ($3,365, based on performance of the RLF). Flexible loan ~ policies allow a ratio of up to $8,000 CDBG per job. o Strong commitment from private lending institutions. o Strong management capacity with majority of administrative funds (79%) being provided by other sources. o Project is ready for implementation with experienced staff on board, forms and procedures finalized, loan criteria established and loan committee appointed. CON STATEMENTS: COMMENTS: o Local Priority: 1 of 1: Project is #1 priority of 5 of 6 counties served by RLF. o Eligibility of activities: Eligible as proposed. o Validity of National Objectives: Valid as low/mod benefit. o The $350,000 19B4 CDBG allocation was released 11/16/84. The RLF Committee has since approved loans totalling $250,000 which have leveraged $2,225,000 from private sources and have created or will create 52 FTE's and 42 part-time jobs. ~ Of these, it is estimated that in excess of 90% will be held by low-and ,., moderate-income persons. The Committee has tentatively approved a $100,000 loan ($700,000 match) that will deplete remaining funds, and will be considering applications for $240,000 in RLF assistance at their March meeting. Their actions will be contingent upon the availability of additional funds. o The RLF has received extensive favorable publicity. o Delta County administers an RLF ($300,000 1983 CDBG). What is the relationship between these programs and how, if at all, is the needs assessment affected by the availability of an RLF in Delta County? o Is the total amount requested, $1 million, needed in order to sufficiently capitalize the RLF so that it can be self sustaining? ....