Madera County officials tout loan programs, modify procedure

The Madera County Board of Supervisors has made a procedural change involving block grant funding that will allow it to continue to assist the local economy by helping home and business owners.

Last week the board approved loan programs for housing rehabilitation and financial assistance for businesses. The money for the loans comes from the federal government and is administered through the state in the form of Community Development Block Grants.

Supervisors voted unanimously Feb. 3 to allow funding for business and housing rehabilitation loans to come from separate accounts, which is now required by the state. Previously the funding was doled out from the same account on a first-come, first-served basis.

“We’re still going to manage the funds the same way we have,” said Norman Allinder, Madera County planning director. “From an operational standpoint, we plan on doing it in similar ways, except for the fact we’re opening the door up to do loans for some of the folks that have been hurt by natural disasters.”

Allinder said the county is given a choice by the federal government to provide the money in the form of loans or grants. He said Madera County has chosen loans because when the money is paid back it can be loaned out again.

Bobby Kahn, the executive director of the Madera County Economic Commission, said the loans to businesses help the economy. The commission manages the revolving loan funding.

“We have currently about $1 million on our books that are loans to small business people,” Kahn said. “On these loans there is a job creation element. The numbers aren’t huge, but it’s allowing our local businesses to grow ... and add jobs. For every $35,000 they borrow, they have to add a job.”

Kahn said a couple hundred jobs in Madera County have been created through the program.

District 2 Supervisor David Rogers said he has been involved with Community Development Block Grant funding since before being elected to the board and has seen how the housing portion has helped people.

“I think the CDBG program has been very helpful to our community in eliminating blighted situations,” Rogers said. “I did a lot of building in this county of new homes for quite a few vets and incidentally maybe some of their widows. Each time I was involved in those projects my heart was full because I knew I was making a difference.”

This story was originally published February 17, 2015 at 4:19 PM with the headline "Madera County officials tout loan programs, modify procedure."