TITLE
Title
MWBE CAPITAL ACCESS PROGRAM ADMINISTRATION
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SPONSOR
Sponsor
Shaunne N. Thomas
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BACKGROUND
Background
The Guilford County 2023 Disparity Study quantitative findings found marketplace disparities, “Controlling for race and gender-neutral factors, as compared to non-MWBEs: African American and Native Americans (whether or not certified) have more loan denials.” The Disparity Study also found in its anecdotal evidence that “Access to commercial financing acts as a barrier, particularly for African American firms. Therefore, the Guilford County Board of Commissioners, through adoption of Disparity Study recommendation #8: Invest in broader and more targeted outreach and supporting services has empowered the MWBE Department to create a capital access program for its Guilford County certified and registered MWBEs.
The Guilford County MWBE Department in partnership with Carolina Small Business Development Fund, selected through a Request for Proposal process, will offer a loan guarantee program to provide access loans ranging from $25,000 to $75,000. Prime contractors or subcontractors eligible for the Capital Access program must be certified as a North Carolina Historically Underutilized Business with a business in the Guilford County relevant market and have a new contract or subcontract with Guilford County. Guilford County contracts or subcontracts will serve as collateral for approved working capital loans. Working capital loans may be used for assistance with mobilization, equipment purchases, and the addition of workforce needed to execute the contract.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED. Funds approved in the adoption of the FY24 Budget.
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REQUESTED ACTION
Requested Action
Approve a three year contract award, in substantial form, with an administration fee of $150,000 and a guarantee loan amount of $400,0000 for a total contract value of $550,000 to vendor Carolina Small Business Develop...
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