Otero County Commissioners Extend Community Development Block Grant

Description: Otero County Director of Economic Development Danelle Berg presented a request to extend the Community Development Block Grant During The Otero County Commissioners Regular Public Hearing May 10, 2021.

Otero County Commissioners Extend Community Development Block Grant

During their regular Otero County Commissioners meeting on May 10th the Otero County Director of Economic Development Danelle Berg presented a request to extend the Community Development Block Grant.

The Otero County Commissioners Unanimously Voted to Extend the Community Development Block Grant. 

Otero County Director of Economic Development Danelle Berg: "I'm here this afternoon to talk to you a little bit about the community development block grants that we currently have. In July of 2019 Otero County as an applicant and Otero County Partners Inc. as a co-applicant were awarded $250,000 Community Development Block Grant and this was specifically to our business loan fund through Otero Partners Inc."

"The contract is due to expire in July of this year. Over the last two years Otero partners has funded one CDBG loan in the amount of $35,000. The balance of our CDBG is $209,400 and we are requesting a two year extension of our current CDBG contract between the Small Business Development Center and the Business Loan Fund there's been a large increase in the number of people in businesses across Otero and Las Animas Counties. They're interested in the business loan fund. Currently I have nine projects on my desk that total requests are over half a million dollars in requests."

"Today I'm asking the commissioners to sign off on the letter to Alison Anderson, who's the CDBG Program manager that requests a two year extension of our current contract, and the letter is in the packet."

"So the CDBG grant or Community Development Block Grant It's a $250,000 grant. Otero Partners get some admin money. We don't take admin money until we have until we have a loan. So on a $35,000 loan, then you add the admin fee, and then you request that amount from the state. So when we did the $35,000 loan Otero partners earn $5,600 that goes into their account for the admin fee. So, $250,000, the original grant 40,000 of that is admin fee should we be able to loan out $210,000."

"I believe that COVID has had a severe impact on business loans over the last two years, our contract is for two years and then we get two more years on this extension that we are eligible for a second extension two more years. So we need to spend this first."

"So with nine projects on my desk, of course, the applicants have to fill out all the documentation. It goes to the loan review committee first, which is a combination of Otero, county and Las Animas County individuals appointed by the commissioners, and with a positive answer from the loan review committee again it's taken to Otero Partners Inc. to say yes or no to funding the loan."

Baldwin: "To the board?"

Berg: "Yes."

"So the loan review committee only gives a recommendation and then the board makes the decision of whether to fund the loan or not."

"So with this new contract with only the one I feel kind of sheepish that it's not enough, but we'll get there. We'll get it all spent."

Commissioner Jim Baldwin: "So after you spend the $209,000 then you can go back and ask for the $275,000?"

"Absolutely, we can go back and say, as we did that with our last contracts, we can go back and ask for additional dollars and you can do that twice. So, and the additional dollars are usually another $250,000 And then, depending on what you have for the last two years you could request another $250,000. So we'll work through what we have first."

Commissioner Baldwin: "sounds good."

Berg: "I think you have the original letter in your hands, you're also signing that."

Commissioner Baldwin: "Right. Any questions for Danelle? Okay, hearing none, I would entertain a motion."

Commissioner John Hostetler: "I move to sign the CDBG Extension Request."

Commissioner Rob Oquist: "I'll second."

Baldwin: "We have a motion and a second. All those in favor say aye."

Oquist: "Aye." Hostetler: "Aye."

Baldwin: "Opposed?"

"Motion carries."

Otero DHS Extends Leap Application Deadline To June 1st