By Kirk Ross
Staff Writer
Be prepared. That’s the message James Harris, Carrboro’s economic director, said is the key to not only a successful new business, but a successful application to the town’s revolving loan program.
In a report to the Board of Aldermen at their meeting Tuesday night, Harris said the 21-year record of the program has a number of success stories, all with good preparation in common.
“The more prepared they are up front, the more they are apt to succeed,” he said.
Harris said the program should have a substantial fund balance of $412,585 by the end of the fiscal year in June.
The program currently has $215,480 in outstanding principle on seven loans and $383,115 in cash equity available.
Board members offered few tweaks they’d like to see.
Jacquie Gist asked Harris to do some tracking to make sure the loan process is not taking too long.
Mayor Mark Chilton suggested rewording a requirement that an applicant be turned down by at least two banks before being eligible. The language could turn away some entrepreneurs, he said.
Harris said the requirement is meant to make sure applicants have thought through their proposals and have some documentation.
Joal Hall Broun said there need to be rules in place to make sure applicants have a serious plan.
“We need to know that if you’re going to do it with Carrboro money,” she said, “you’re not some fly-by-night thing and you’ve done your homework.”
Dan Coleman noted that with such a large fund balance, he’d like to see some way to make sure the bulk of the money is always at work. Coleman suggested setting a standard for what percentage of the funds should be loaned out.