Local small business program to continue

LISBON - A local program to help people fulfill their dreams of starting a small business was renewed Wednesday by Columbiana County commissioners.

Commissioners agreed to continue its working agreement with the Community Action Agency, which administers the microenterprise small business program on behalf of the county.

Started in 2002 with an infusion of state tax dollars, the microenterprise program provides loans of between $2,000 and $15,000 to income-eligible people seeking to start their own business that will employ five people or less.

Over the years, a six-member review board has issued 21 loans totaling $205,585, which includes matching funds provided through the county's small business revolving loan fund program. Seven of the loans have been repaid in full, while five more are in default.

The 16 good loans have created a total of 25 jobs, according to CAA financial services manager Martina Grimm. The businesses that have been started include printing, home health care, jewelry maker, greeting cards, garbage pickup, lawn care, photography and excavation.

In addition to being of low or moderate income, applicants must complete a small business training program, prepare a business plan with three years' worth of cash projections, and have an acceptable credit history. The CAA also provides applicants with small business training, budget/credit counseling and loan packaging.

The applicants are required to put up 10 percent equity toward the loan, which can take the form of money or related purchases, such as tools or equipment.

The money is repaid to the microenteprise program, where it is loaned out to new applicants. The fund currently has a balance of $85,000, according to Pam Dray of the county development department.

As program administrator, the CAA is paid $23,000, which comes directly from the state and not out of the pot of loan money.