Thursday, September 22, 2011

WDI Taking $61k to Administer Program That Loans Out Only $13k?

Through the Community Lending Program [,] [s]mall business loans are funded by the Economic Development Revolving Loan funds, not entitlement funds. Micro-enterprise loans are a minimum of $5,000 and a maximum of $25,000. Funds may be used for the creation of a small business, business expansion and relocation, or rehabilitation of commercial structures for the location of a small business in commercial corridors. During FY2010-11 there were disbursements of $12,648.15 expended. The loans support a restaurant and dry cleaner; 1.965 FTE jobs created and 18.125 FTE retained resulting in 20.09 FTE jobs created. [Isn't it magic how the government can calculate these "jobs created?"]

Wilmington Downtown, Inc. (WDI) is under contract to administer a loan guarantee fund utilizing unrestricted "old UDAG" and general funds. In FY2010-11 $445,209 was available for loan program including operating funds of $60,979.
I'm going to try to find out more information about this, but it appears as if WDI is receiving about $61k (in operating costs) to administer a program that loaned out less than $13k.


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